There has been a lot of turbulence in this country over the proposition of European commissioner Olli Rehn to let large depositors participate in the costs when a bank collapses. The guaranteed deposit system has to balance many different elements. Not taking this into account is danger...
Over the last years, public expenses have increased faster than the basis of the economy. Taking into account the high public debt and the problem of the ageing population, our country will more than ever need to apply more budgetary discipline.
Prof. Bayenet presents the main characteristics of the current financing mechanisms as well as the main modifications resulting from the sixth state reform.
Prof. dr. Herman Matthijs proposes a deeper revision of the financial flows in Belgium. He presents new solutions and compares them to the current situation.
Cutting the link between the sovereign debt problem and the banking issue should be a priority. A European resolution fund for banks can lead to a breakthrough for the current stalemate. Also European supervision and a deposit insurance system is crucial.