Economist warns Europe must help to share burden of banking losses

THE state cannot afford to shoulder the losses from the banking crisis on its own, according to a new report from Goodbody Stockbrokers.

It also disagrees with the view that bond holders should be “burned” as a means of easing the debt crisis .

Instead the report’s author, Goodbody’s chief economist Dermot O’Leary calls for some form of risk sharing and any new government must try to negotiate European-wide resolution to this crisis.