They want to bring in their long-cherished dream of integration of EU, including financial integration, by finally blaming EU countries and their people for depression. However, that’s not going to happen. Many people across the world have already understood that such depression has been intentionally created by IMF and central banks.
* Information from Mr. Takeshita posted on his blog – July 7, 2012
English Translation of a Japanese article from Iran Radio (Commented by Bakhtiari) – July 6, 2012 -
Crisis of European Banks
In spite of an agreement on support of financial organizations by leaders of the EU countries, the number of European banks at the brink of bankruptcy has been increasing day by day.
In response to such situation, on 5th Thursday, the President of ECB and others held a meeting to discuss how to cope with the crisis within the Euro. In this meeting, it was decided that financial organizations should lower their key interest rates from 1 percent to 0.75 percent in order to control debt crisis and prevent this crisis from spreading to banks. Cut in interest rate by ECB is the third for the past one year. This measure was taken based on the agreement reached in the meeting held in Brussels, Belgium on 29th last month.
President Mario Draughi of ECB had already called on the leaders and politicians of EU to make further drastic decisions to cope with the financial crisis. Furthermore, IMF, in the report on global financial system lately released, says “European economy is expected to be downgraded this year and it seems to be difficult for the area to be liberated from this problem in 2013.” IMF also says “European major banks will probably shrink their balance sheet amount by 2.6 trillion dollars by 2013, which accounts for seven percent of the whole capital.”
According to experts on political problems, measures to cope with the financial organization crisis can be put into practice only by a drastic intervention by the government and a hike in the citizen tax money.
According to the experts, European leaders decided to give a support of 100 billion euros to Spanish banks, the biggest reason for it was to prevent this crisis from spreading to other countries. Actually, they are concerned about the likelihood of the same debt crisis as seen in Greek. The biggest reason why experts and government officials pay attention to the bank crisis is probably that the crisis has spread to Sweden, not EU member country.
However, formation of a bank alliance to monitor the activities of financial organizations within the euro area is one of the important approaches to cope with the European financial crisis. Generally, the European financial crisis is likely to influence other financial organizations and substructures in the area.