欧金融大手解体 独仏の主導で連鎖危機を防げ

The Yomiuri Shimbun (Oct. 13, 2011)
Dexia's downfall adds urgency to fixing European finances
欧金融大手解体 独仏の主導で連鎖危機を防げ(10月12日付・読売社説)

Greece's fiscal crisis has led to an agreement on the dismantling of a financially strapped major European banking institution under state guarantees.

This is the first time for a leading financial institution to be taken apart since the Greek debt issue emerged two years ago.

The European financial crisis, it may be said, has entered a new phase.

Efforts must be made to prevent the financial crisis from expanding and exerting a further adverse effect on the world economy.

Germany and France must take the initiative in strengthening European unity to work toward a stabilization of the financial system.

The troubled bank in question is Dexia, which has business footholds in France and Belgium.

The bank faced a management crisis due to the drop in the price of the Greek bonds it holds in great quantities.

A rescue package agreed upon by the governments of France, Belgium and Luxembourg calls for dismantling Dexia and placing Dexia Bank Belgium temporarily under state ownership with an injection of public funds.

The package also includes a plan to separate bad loans and provide state-guaranteed loans to support its fund management.

The announcement of the bailout package led to a rise in stock prices in Europe, the United States, Japan and elsewhere.

A sense of relief seems to have prevailed globally.


Which bank is next?

But a matter of concern is the fact that Dexia is not the only European bank holding huge amounts of government bonds issued by deficit-ridden countries, which include Italy and Spain on top of Greece.

The ratings of government bonds issued by Italy and Spain have been lowered, following that of Greece.

If European financial authorities do not succeed in dealing with the crisis soon, doubts and fears may grow stronger, with people wondering which bank will be the next to crumble.

According to an estimate by the International Monetary Fund, it will require 200 billion euros (about 20 trillion yen) to recapitalize banking institutions laden down with government bonds of the deficit-laden European countries.

The European Union announced in mid-July the results of stress tests on major eurozone banks.

But as Dexia passed these tests, it cannot be denied that the EU's examination was lax.


Early recapitalization vital

The EU must reexamine the financial conditions of each bank more strictly.

Each bank is urged to expedite early recapitalization so that it can prepare in advance should it suffer losses from the government bonds it holds.

German Chancellor Angela Merkel and French President Nicolas Sarkozy held talks and agreed to shore up banks through capital reinforcement.

This resulted from their increased sense of crisis about Dexia.

Their decision was quite right.

(no equivelent part in English version) (英字紙はこの部分翻訳抜けです^^)

The Group of 20 principal economies will hold a meeting of their financial ministers and central bank governors in Paris later this week.

A summit meeting of EU and eurozone leaders is scheduled for Oct. 23.

The European countries must put forth definite measures, including the bold injection of public funds and the further expansion of its European Financial Stability Facility bailout fund.

(From The Yomiuri Shimbun, Oct. 12, 2011)
(2011年10月12日01時05分 読売新聞)

by kiyoshimat | 2011-10-14 07:21 | 英字新聞

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