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Five things you should know about Spain’s bank rescue

The size and the impact of Spain’s humongous bank bail that came in the wake of the 2007-2008 final crisis – caused by the out of control financial sector, including in Spain – is being concealed. Here’s what you should know about it in five points:

1. Losses to the Spanish people from the public rescues the Spanish banking will exceed 130,000 million euros. None of the organisms that have the information on this matter (Bank of Spain, Spanish government, European Commission) has published or intends to publish the real numbers; on the contrary, it has diluted them, falsified and concealed them.

2. This number is huge compared with the cuts to public services, welfare and standard of living of Spaniards.

3. This huge publicly financed bail out has not had any positive effect on the economic growth of Spain, nor on the increase of the credit, which keeps on diminishing.

4. The rescue has been much more expensive for the citizens than the cost of allowing the broken banks to fold in an orderly and socially acceptable fashion.

6. The administrative and/or judicial punishment of those who, by their actions, through irrational or venal omission, are responsible for the meltdown of the Spanish banking sector and the horrendous social consequences, has not yet occurred.

More on the matter by Miguel Ángel Lorente y Juan-Ramón Capella (in Spanish)

About revoltingeurope

Writer on Europe's Left, trade union and social movements @tomgilltweets or @revoltingeurope

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