The Communist Party of Malta criticises the European Commission proposals regarding the reforming of banks in Europe, as these proposals 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 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 bloc 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.

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

■ Victor Degiovanni

Secretary

Communist Party of Malta