Ms. Kroes, the member of the Commission responsible for State aid control and antitrust recently addressed the Economic and Monetary Affairs Committee of the European Parliament.
Her speech, which gives some indication of the calamitous state of the banking sector in Europe, outlines what has been done so far to shore up all those bankrupt banks. In essence, it seems that the Commission is rubber stamping the aid given by member States to their banking and credit institutions.
The speech seems to imply that far worse is to come.
In expectation of the coming catastrophe, the Commission will issue new guidance for bank recapitalization and guarantee schemes.