mr president the most fundamental weakness of the proposed stress tests has now been referred to
it is the possibility of widespread sovereignty faults
surely this is a very likely development given the incredible level of debts that have been loaded onto economies that are simply unable to pay
for example the irish state is on track to owe eur seven hundred and fifty billion by twenty fourteen and we have a government debt that is more than eur one hundred and twenty zero per worker
irrespective of a potential cut in the interest rate and our so-called bail-out this is unsustainable and the irish state will default
i understand that german banks are exposed to greece ireland portugal and spain the so-called pigs to the tune of eur four hundred billion
french banks are exposed to the tune of eur two hundred and sixty billion and british banks eur three hundred billion
this massive exposure explains the vicious austerity applied by the commission and the european central bank to working people in the peripheral economies
it is my understanding that the stress tests will assume that the funding needs of the banks remain stable
given the potential for a deepening of the crisis this is unlikely to be the case
for example eur thirty-four billion left the six irish domestic banks in the last three months of twenty ten forcing them to rely on what is supposedly short-term funding from the ecb to the tune of eur one hundred and sixty billion
on the restructuring of the banking sector surely the most fundamental lesson that has to be drawn from the experience of the last number of years and the major crisis is that the major financial institutions and banks cannot be left in private hands
the pursuit of profit by these private institutions has played a significant role in wrecking our economies for which working people have paid a terrible price
the major financial institutions the major banks must be taken into democratic public ownership
the dictatorship of the financial markets must be ended and their massive resources should be used to benefit ordinary people through the granting of loans to small businesses affordable mortgages to help homebuyers and so on
