Friday, September 14, 2012

The Communist Party supports the call for Separation of Banks

The Communist Party of Malta criticizes the European Commission proposals regarding the reforming of Banks in Europe, as these proposal are not taking into account that speculation by banks was the cause  behind the financial and economic crisis. The European Banking reform is just another neo liberal concept.     

The Party states that “the European Union should have separated banks into two categories, one for financial investment and the other for public investment. Speculation should be left to financial institutions and should not benefit from state protection with the taxpayers money. This proposal has also the backing of the European Left Block in the European Parliament”. 

“The argument put forward by the European Commission to give the European Central Bank more power to keep banks in check, is a short term vision. A more viable strategy is to separate banks from financial institutions. The Maltese Government should also adhere to this principle”, said the Communist Party.

The Communist Party of Malta supports also the introduction in Europe of the financial transaction tax; public control of the banking sector; and the closure of tax havens. We also are in favour of the eventual nationalisation of banks. 

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