The leaders of the 17 Eurozone countries announced on July 10th that the 30 billion euro needed by the Spanish banks will finally be released before the end of the month. Its good news for those of us with even small amounts deposited in the Spanish banking system. The bank run is over and our money is safe. Yeah! The terms and conditions of the bailout however are different from those implied by the leaders of Spain and Italy only two weeks ago. The money was promised to the banks rather than the Government meaning that no further austerity was required to satisfy the Government of Europe (Germany). Spain announced however that a further 30 billion of cuts will be implemented before the end of the year on top of the 30 billion already introduced. (That’s a lot of 30 billions). Anyway, the reason for not lending directly to the banks is that the Eurozone group first wants to see the setting up of an “effective single supervisory mechanism for the banks in Europe”. Translation….The governments in Europe don’t trust the banks, their policies or especially their management- none of it, and are once again putting the blame for this crisis at the door of the banks. The austerity measures to be introduced include longer working weeks for public service workers. I know in many cases these people do a good job but am I right in thinking 35 hours per week is hardly back breaking stuff? Either way- Good to see the light at the end of the tune may not be an oncoming train.–
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