6 October 2008

Let the government guarantee savers

Western banks are collapsing one after the other, even the ones that are the most solid and that have existed for centuries. In this financial storm that doesn’t seem to stop, some European governments are reassuring their savers with important declarations and solid actions.

Ireland was the first to guarantee total cover for deposits to avoid the spread of a collective fear and to avoid the worsening of the financial situation. Today, the German government decided to follow the Irish one and to guarantee all deposits of private savers in German banks. The decision of the government of Angela Merkel’s executive was announced by the spokesperson of the Finance Minister Tosten Albig.

The Berlusconi government must reassure savers and give stability to our finance system. The President of the Council has the obligation to ensure the full coverage of bank savings without placing any limit otherwise what could happen from this point on will be taken for granted. That is a massive flight of savings from Italy to the countries that offer a total guarantee for savers with the resulting crash of our banking system.

Posted by Antonio Di Pietro in Economy