RegionsEC President Barroso Blames US Banks for Crisis at G20 Summit

EC President Barroso Blames US Banks for Crisis at G20 Summit

European
Commission (EC) president Jose Manuel Barroso has said that he regards US banks
as ultimately to blame for the crisis in the eurozone.

Interviewed
at the opening of the summit of the Group of 20 industrialised and developing
countries (G20), whose leaders have assembled at the Mexican town of Los Cabos,
Barroso said that European leaders had not come to the meeting to be told
how to run their economies and resolve the sovereign debt crisis.

Asked
by a Canadian reporter why North American economies should assist the EU, he responded: “Frankly, we are not here to receive lessons in terms
of democracy or in terms of how to handle the economy. The crisis was not
originated in Europe; seeing as you mention North America, this crisis
originated in North America and much of our financial sector was contaminated
by, how can I put it, unorthodox practices from some sectors of the financial
market.”

Barroso also suggested that the link between highly indebted governments and
bad banks needed to be broken and suggested Spain could be a starting point,
although it remains legally difficult to do it immediately. “What we expect now
is that Spain will make the formal request [for help], and then we will discuss
between the euro area members the best way to do it,” he told reporters.

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