Bloomberg News

Viability of Euro Zone Is in Doubt, Spanish Banking Group Says

December 20, 2011

Dec. 20 (Bloomberg) -- The crisis facing the euro zone is severe enough to put the bloc’s survival into doubt, while Spain’s economy is in a “critical” situation, the country’s banking association said.

“The euro-zone crisis has acquired an extraordinary seriousness to the extent that it puts into doubt its own viability,” the group, known as AEB, said in its December economic report.

Policy makers should could consider issuing bonds backed by all nations using the euro, allow the European Central Bank to act as a lender of last resort and count on International Monetary Fund assistance for countries in difficulties, the report said. The AEB represents 93 Spanish and foreign banks operating in Spain.

--Editors: Stephen Taylor, Keith Campbell

To contact the reporter on this story: Charles Penty in Madrid at cpenty@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net


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