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Temporary rescue measures will not take us out of the financial crisis, Competition Commissioner Neelie Kroes said. Briefing the ECOFIN Council on restructuring of banks and their return to viability Kroes underlined that financial stability and the preservation of competitive markets are complementary objectives and that those who pretend that we should forget about competition for the sake of financial stability are missing the point.
"We need to start thinking about a return to viability without state support, which means the timely phasing out of the rescue schemes”, the Commissioner said.
Next to the restructuring of ailing banks it has to be made sure that competition distortions are limited, she said. It would be disastrous that those banks that behaved imprudently would be rewarded through state aid, and could thrive to the detriment of non-aided rivals, she warned.
The Commissioner announced that the Commission will soon publish some guidelines for restructuring banks and returning to viability. “We are in the process of reviewing comments received from the Ministries of Finance through consultation of the Economic and Financial Committee. I hope that this process can be finalised rapidly, so that we can catch up with the
The full statement of Commissioner Kroes can be downloaded below.