Schauble announces control of spain’s banking reform

Schauble announces control of spain's banking reform

It will be checked in exactly the same way that the program is adhered to," he said on monday on deutschlandfunk radio. However, the control relates exclusively to the restructuring of the banking sector. Spain announced on the weekend that it would apply for billions in aid from the euro partners to restructure its banking system.

Among the reasons for the shaky banking system in spain, schauble pointed to problems in the real estate market. The current steps are a result of the real estate crisis in the U.S.A. "As a lesson from the crisis of that time, we advised spain: you must provide the spanish banks with sufficient money – whether they want it or not."

The three countries portugal, ireland and greece already receive emergency aid for their entire budgets from the EFSF rescue fund. You have to comply with far-reaching reform and savings requirements – not only in the banking sector – to do this. In july, the EFSF is to be replaced by the permanent bailout fund ESM, which, unlike the EFSF, also has cash deposits from the eurozone countries.

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