EU governments’ support for financial sector 4.5 tr Euros; UK top of the list

Monday, December 6th 2010 - 05:23 UTC

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European Union states have underwritten their financial sectors with 4.5 trillion Euros of aid since the banking crisis hit. Top of the league is the UK, which pledged 850.3bn Euros of support between October 2008 and October 2010.

The figures come from the European Commission, which must approve state aid to the EU member countries. The aid includes guarantees, asset relief, and grants, but only a quarter of the money has been drawn down.

Bank aid pledged by EU states (bn euros)

United Kingdom - 850.3
Ireland - 723.3
Denmark - 599.7
Germany - 592.2
France - 351.1
Spain - 334.3
Belgium - 328.6
Netherlands - 323.6
Sweden - 161.6
Austria - 91.7
Greece - 78
Finland - 54
Portugal - 20.5
Italy - 20
Slovenia - 12
Luxembourg - 11.6
Hungary - 10.3
Poland - 9.2
Latvia - 8.8
Slovakia - 3.4
Cyprus - 3
Lithuania - 1.7

Some 1.1tn was actually drawn down in 2009, according to national figures passed to Brussels. For 2008 it was 957bn euros. About three quarters of the total 4.5tn approved was in the form of state loans or guarantees.

In the EU league table of financial support (for 22 of the union's 27 members) the UK was closely followed by the newly bailed out Republic of Ireland, which pledged 723.3bn, and Denmark with 599.7bn Lithuania was at the bottom, with guarantees and grants worth 1.7bn.

The EC has imposed a framework aimed at phasing out aid for the bank sector, and intends tougher scrutiny of companies wanting money. It said in a statement on Wednesday the EC said that from 1 January, “every bank requiring state support in the form of capital or impaired asset measures will have to submit a restructuring plan”.

EU competition commissioner Joaquin Almunia said: “After almost two years of a specific crisis state aid regime, we need to prepare a gradual return to normal market functioning.

”Of course, the remaining risk of renewed stress is a valid reason to proceed with care and caution in the exit process,” he said.

Excluding crisis-support for the financial sector, total aid approved by the EC for all member countries in 2009 - the latest figures available - was 73.2 bn Euros, about the same as 2008. This included aid to industry and services worth 58.1bn euros. (BBC).-

Categories: Economy, Politics, International.

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Redhoyt
According to commentators on these pages the UK is broke ..... wonder where we got the money from ?
Dec 06th, 2010 - 08:31 am 0
Zethee
From our pirat navy of course.

YARR!
Dec 06th, 2010 - 03:40 pm 0
polacandino
”wonder where we got the money from? is a good question. All money today is fiat currency which is backed by the ability of governments to collect an equivalent amount in taxes from its people at some time in the future. So the answer to question may be that you got the money from your children or, more likely, such a large sum would have to be put on your grandchildren. Depending on the depth of your current debt, your great-grandchildren might be paying the bill for this one. In some countries (you know who you are!), rich people have gotten laws passed that exempt them from the taxes needed to pay for today's currency issues. In a few countries, ordinary people are saying that they no longer want to participate in the great global financial casino. Global finance is on overdrive right now, printing more money than anybody will possibly ever be able to underwrite. I wouldn't worry too much about the UK getting wiped out. When that happens, everybody else will be broke as well.
Dec 07th, 2010 - 01:17 am 0

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