Socialists’ dangerous proposal

The proposal put forward recently by socialist PASOK opposition leader George Papandreou, who has argued in favor of re-establishing a large state-owned bank, has raised a great deal of justified concern among the country’s banking experts. The reason for this is that no one would want to see an institution like the National Bank of Greece fall under the control of the state and the political party in government. PASOK’s proposal would risk recreating an ailing situation that would be reminiscent of those of the past decades. Appointing staff and giving out loans in accordance with politically expedient criteria could only damage the institution’s own interests and the country as a whole. No less disconcerting is the agenda of certain circles, which would like to see the country’s biggest credit institution come to the rescue of private banks when that is deemed necessary, not on the basis of its own best interests but in accordance with the needs of the troubled banks’ main shareholders.

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