Sven Giegold

No new state aid to banks in the Brexit turmoil

The current attempt of the Italian government to push through new state aid to banks (inter alia for Banca Monte dei Paschi) is commented by MEP Sven Giegold, financial and economic policy spokesperson of the Greens/EFA group:

“It is audacious to misuse the Brexit turmoil in order push through new state aid for banks. The trial of the Italian government to undermine the liability principle is unacceptable and unfounded. There is no acute crisis on the capital markets. Therefore, the doubtful exemptions in the EU directive on banking restructuring (“BRRD”) are not relevant. I call on the EU commission to stay tough and apply EU state aid rules forcefully. New state aid for banks would be a slap in the face of tax payers all over Europe. The creditors of banks have to be liable for the risks they took. The member states shall abstain from putting pressure on the EU commission to act against applicable european law.

On my proposal the Committee on economic and monetary affairs of the European Parliament (ECON) will deal with the matter.”

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