European Union member states have injected a total of €3 trillion ($4 trillion) in fighting against the financial crisis, the EU’s executive Commission said on Wednesday.
“In order to safeguard financial stability, Member States have set up guarantee umbrellas, risk shields and recapitalization measures for the financial sector with an overall volume of up to 3000 billion,” the Commission said in a special report.
EU states have earmarked €2.3 trillion for financial guarantee umbrellas, €300 billion in recapitalization programs and €400 billion in other rescue and restructuring schemes, it said.
“The past six months have shown that state aid control plays a key role in tackling the challenges of the economic crisis in a coordinated way across Europe,” said EU Competition Commissioner Neelie Kroes.
The Commission’s speedy approval of the aid plans not only rescued banks but also the EU’s coveted single market by preventing protectionism at a time of economic recession. “The responsibility now lies with the financial sector to clean up their balance sheets and restructure to ensure a viable future,” she added.
Since September 2008, when the global financial crisis began to worsen, the Commission has taken more than 50 decisions in record speed, and approved around 25 state measures in 10 member states aimed at stabilizing companies and jobs in the real economy, the report said. (Xinhua)