The German Federal Minister of Finance, Wolfgang Schäuble, has announced that the European Union Commission (EU), the International Monetary Fund (IMF) and the European Central Bank (ECB), will monitor the restructuring of the banking sector in Spain.
“They will be responsible for monitoring the program precisely to ensure it is fulfilled,” Schäuble told the public broadcaster ‘Deutschlandfunk’ two days after the approval of 100,000 million euros in aid to rescue Spain’s banks.
After stressing that this supervision would be restricted exclusively to the restructuring of the banking systems, Schäuble said that the Spanish financial sector is reeling from problems that have arisen due to the housing bubble. He also stressed that the measures taken on Saturday, by the Ministers of Economy and Finance of the eurozone, are based on experience gained after the real estate crisis in the United States.
“As a lesson of that crisis we have advised Spain: you must provide the banks with enough money whether they want it or not,” said Schäuble, in the radio interview.
Diario Sur reported that the German minister said on Saturday, after the Eurogroup video-conference, that Spain “is on the right path” to resolving their financial problems. “Spain has carried out many reforms since 2008, including several of importance in the banking sector,” Schäuble said. He also stressed that, thanks to these reforms, the main Spanish banks have managed to cope well with the crisis and are proving stable.