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Bank bailout comes at a price for Spain

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Eurozone finance ministers approved Spain's bank bailout on Friday but it comes at a price.

The countries that are lending the money have forced Madrid to abide by strict conditions in return for the funds.

Spanish officials are not happy about that as they have been doing everything possible to ensure the country's national sovereignty is not weakened.

As well as honouring its government deficit reduction targets and commitments on structural reforms, Madrid will have to accept closer outside scrutiny of Spanish banks by handing over its banking supervision powers.

The banks that get bailout money will have to open their doors to the European Commission the European Central Bank and the European Banking Authority.

To ensure there is no political meddling, the economy minister will have to relinquish some of his powers to the central bank - the Bank of

Added: Jul-21-2012 Occurred On: Jul-21-2012
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Tags: bank, bailout, spain, euro, eu, economy, debt, housing, bubble, europe
Location: Spain (load item map)
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