Economy: ‘€1trn bombshell for European taxpayers’

18 June 2013 – Presseurop Les Echos

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According to the French economic daily, the subprime crisis “is not a dead letter.” In fact, it has —

… left a bill that banks, European states, and thus taxpayers, will have to pay off over several decades.

Six years after the outbreak of the crisis, “more than €1trn of dubious or illiquid assets remain in “bad banks”. For example, at the end of March 2013, the Dexia “bad bank” still held €266bn of toxic assets, which it will take the Franco-Belgian institution “63 years to liquidate.”

For the Les Echos columnist, this amounts to —

… a formal refutation for all of those who insist that the crisis is behind us.

Factual or translation error? Tell us.