Joseph Stiglitz: don't delay European banking Union
Nobel-prize winner says time is running out for Europe, nations must share the burden
Nobel-prize winning economist Joseph Stiglitz says European nations must share past debts to lift the burden of high interest rates on Spain and Greece and implement a banking union with deposit insurance to prevent capital flight. If you don't do that, "the weak countries get weaker and the whole system falls apart", Stiglitz told Bloomberg in an interview in Geneva. He warned against delaying implementation of a banking framework. "The system may fail completely or lending will become so constrained that the economy will go further down and you're involved in a vicious downward spiral. Things are bad now, and they're going to be getting worse."