Spain Threat to Whole Europe Bank System, Bofinger Tells DRadio
Peter Bofinger, an economic adviser to German Chancellor Angela Merkel, said a Spanish banking collapse could threaten the whole European banking system because Spain’s lenders have foreign liabilities of 160 billion euros ($201 billion), Deutschlandradio Kultur reported today.
Europe is now experiencing the failure of a strategy that has been followed in the past two years and that has included quick and maximum budget cuts and solidarity only in emergencies, Bofinger said, according to the radio channel. Europe faces “a pile of broken glass,” he told DRadio.
To contact the reporter on this story: Niklas Magnusson in Hamburg at firstname.lastname@example.org
To contact the editor responsible for this story: Angela Cullen at email@example.com
Bloomberg moderates all comments. Comments that are abusive or off-topic will not be posted to the site. Excessively long comments may be moderated as well. Bloomberg cannot facilitate requests to remove comments or explain individual moderation decisions.