Rehn: European banks’ capitalisation a job for investors

Olli Rehn says the private sector should support banks.

“During an interview on the Finnish Broadcasting Company’s (Yle) morning programme Ykkösaamu, European Commissioner for Economic and Financial Affairs Olli Rehn said that the private sector should be the agent primarily responsible for supporting European banks.

Next, and only then, should it be the job of Member States to show concern for the capitalisation of banks, according to Rehn.

As a last resource, the use of Europe’s stability fund could be considered for those countries that can’t otherwise deal with the situation in which they’ve found themselves, Rehn thinks. A lasting solution for Greece’s debt crisis will be realised in the coming months, Rehn predicts, even though the country is in a difficult situation at present.

The end result of Finland’s battle for collateral was, in Rehn’s own words, ‘a very well-balanced, fair solution’.”