Professor Ngaire Woods on the Spanish bailout
Posted: 11 Jun 2012
Ngaire Woods talked about the recent measures to save Spanish bank in the Today programme of BBC Radio 4 (06 June, 2012) and, later in the day, on Newsnight on BBC 2 (06 June 2012).
Ngaire said that Spain “has exhausted itself on state aid measures to bail out its banking system.”
The discussion also touched on the banking union, the carryover of risk from the financial to the public sector, and efforts to prevent a repeat of the current situation.
On Newsnight, Ngaire said “at the moment, what we’re seeing is a very dangerous brinkmanship—a three way brinkmanship between the European Central Bank, the European leaders, and Spain.” She explained that there would not be a solution to the underlying problem which is that “both the banks and the government are broke.”
Professor Ngaire Woods is Professor of International Political Economy, Director of the Global Economic Governance Programme, University College