The recapitalization of banks is only one of five measures proposed by the President of the European Commission, José Manuel Durão Barroso, which include the resolution of the Greek crisis and the problem of sovereign debt in the eurozone.
As Mr. Durão Barroso points out, the measures must be considered as a whole and adopted jointly and simultaneously.
Therefore, the recapitalization of banks is only contemplated if, at the same time, a definitive solution is provided to the Greek crisis and the sovereign debt problem. Only in that case would recapitalization be possible and effective.
In any case, the AEB understands that, by itself, the indiscriminate nationalization of banks does not solve anything; it may even hinder the necessary restructuring of the banking system.
Finally, the authorities must finish establishing their policy to address the Eurozone crisis, thereby clearing the uncertainties that are preventing banking institutions from making the necessary decisions for their management.
