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Bank bail-outs across Europe have added to the stain on public finances (Photo: EUobserver)

EU bank bail-outs could dwarf stimulus spending

An annual report on public finances published by the European Commission on Tuesday (23 June) indicates the cost of government stimulus packages could pale into insignificance when compared to the bill for EU bank bail-outs.

The lengthy report says the final cost of bank bail-outs is likely to lie anywhere between 2.75 – 16.5 percent of EU GDP depending on the veracity of underlying assumptions and the ability of governments to recover capital injections and loans.

"Experience s...

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Bank bail-outs across Europe have added to the stain on public finances (Photo: EUobserver)

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