Last year, we asked if Europe’s banks were “too big to fail“. Well, since then we’ve had at least one meltdown in a national banking sector that threatened the stability of the eurozone, so perhaps it’s a good time to return to this question. We had a comment sent in from Otto wondering what can be done to avoid having taxpayers foot the bill when a big bank gets into trouble. When we spoke to Gunnar Hökmark, an MEP with the centre-right European People's Party, earlier this year, we asked him to to respond to Otto’s question.
Next up, Michael suggests that a solution could be found in passing legislation to separate what he calls the “casino” investment banks from retail banking. So, do we need a European Glass–Steagall Act? This was certainly the conclusion of a recent report adopted by the European Parliament’s economic committee. Would Hökmark agree?