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The cost of interventions in the financial sector since 2008 in the EU countries

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  • Antonio Millaruelo
  • Ana del Río

Abstract

Since the start of the financial crisis, the advanced countries have deployed numerous measures in support of the financial system, requiring a sizeable volume of public funds. In the EU, aid has been authorised and subject to the conditionality required by the European Commission, in respect of its accountability for competition-related matters. This article explains the broad criteria for recording aid in general government accounts and discusses the different ways of measuring its direct cost. On Eurostat figures for the 2008- 2015 period, the impact of interventions on general government accounts in terms of debt, debt net of assets, deficits and contingent liabilities are shown for the EU countries. Nevertheless, the final cost will not be fully identified until the restructuring processes outstanding have been concluded and the public sector’s remaining exposure to the banking sector has been removed.

Suggested Citation

  • Antonio Millaruelo & Ana del Río, 2017. "The cost of interventions in the financial sector since 2008 in the EU countries," Economic Bulletin, Banco de España, issue JUN.
    • Handle: RePEc:bde:journl:y:2017:i:6:d:aa:n:10
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    References listed on IDEAS

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    1. Honohan, Patrick & Klingebiel, Daniela, 2003. "The fiscal cost implications of an accommodating approach to banking crises," Journal of Banking & Finance, Elsevier, vol. 27(8), pages 1539-1560, August.
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    3. Luc Laeven & Fabian Valencia, 2020. "Systemic Banking Crises Database II," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 68(2), pages 307-361, June.
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    5. Mr. Fabian Valencia & Mr. Luc Laeven, 2012. "Systemic Banking Crises Database: An Update," IMF Working Papers 2012/163, International Monetary Fund.
    6. Antonio Millaruelo & Ana del Río, 2013. "Las medidas de política monetaria no convencionales del BCE a lo largo de la crisis," Boletín Económico, Banco de España, issue JAN, pages 89-99, Enero.
    7. Antonio Millaruelo & Ana del Río, 2010. "El apoyo público al sector financiero en la zona del euro durante la crisis," Boletín Económico, Banco de España, issue SEP, pages 69-82, Septiembr.
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    Cited by:

    1. Henri-Paul Rousseau, 2019. "A schematic view of government as regulator and insurer of the financial system," Working Papers halshs-01993612, HAL.
    2. Vittoria Cerasi & Stefano Montoli, 2020. "Bank resolution and multinational banks," Working Papers 447, University of Milano-Bicocca, Department of Economics, revised Jul 2020.
    3. Lorenzo Esposito & Ettore Giuseppe Gatti & Giuseppe Mastromatteo, 2019. "Sustainable finance, the good, the bad and the ugly: a critical assessment of the EU institutional framework for the green transition," DISCE - Quaderni del Dipartimento di Politica Economica dipe0004, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    4. Manish K. Singh & Marta Gómez-Puig & Simón Sosvilla-Rivero, 2019. "“Increasing contingent guarantees: The asymmetrical effect on sovereign risk of different government interventions"," IREA Working Papers 201914, University of Barcelona, Research Institute of Applied Economics, revised Sep 2019.
    5. Riccardo Ferretti & Giovanni Gallo & Andrea Landi & Valeria Venturelli, 2018. "Market-Book Ratios of European Banks: What Does Explain the Structural Fall?," Centro Studi di Banca e Finanza (CEFIN) (Center for Studies in Banking and Finance) 0065, Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi".
    6. Berger, Allen N. & Molyneux, Phil & Wilson, John O.S., 2020. "Banks and the real economy: An assessment of the research," Journal of Corporate Finance, Elsevier, vol. 62(C).
    7. Henri-Paul Rousseau, 2019. "A schematic view of government as regulator and insurer of the financial system," PSE Working Papers halshs-01993612, HAL.
    8. Riccardo Ferretti & Giovanni Gallo & Andrea Landi & Valeria Venturelli, 2018. "Market-Book Ratios of European Banks: What Does Explain the Structural Fall?," Centro Studi di Banca e Finanza (CEFIN) (Center for Studies in Banking and Finance) 18011, Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi".

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