Publication

The authors of this commentary argue that the Spanish banks’ need for capital can only be provided by the European Stability Mechanism (ESM). Given that the Greek government in any event is in no position to prop up its banks, it is clear that only the ESM can save the Greek banking system. In both cases the ESM - staffed by experts from the European Banking Authority (EBA), the ECB and the national central banks - should then take control over the banks it has recapitalised.