U.K. Chancellor of the Exchequer George Osborne criticized the decision by European authorities to channel funds to Spain’s banks via the government, saying the decision was “depressing,” the Financial Times reported.
“If you do it via the Spanish sovereign then you are not going to convince the market the Spanish sovereign is entirely credible,” Osborne said at a business leaders’ event in London yesterday, the newspaper reported. “And yet they went down this route.”
Osborne also said Greece may need to drop the the euro as its currency before Germany decides to fully stand behind the single currency.
“I ultimately don’t know whether Greece needs to leave the euro in order for the euro zone to do things necessary to make their currency survive,” Osborne said. “I just don’t know whether the German government requires Greek exit to explain to their public why they need to do certain things like banking union, euro bonds and things in common with that.”