Economic crisis - Banks must support this initiative

CALL it what you will but Sunday’s announcement of a €10 billion recapitalisation of the banks is little less than a rearguard action to try to save our economy.

Despite the Christmas lights and what, for some at least, may be the last great Celtic Tiger binge, it really is that serious. The move is intended to force the banking system to again play a full, responsible role in our economy and to encourage lending, especially to cash-starved but viable businesses and employers.

If the move fails, even more businesses will choke and more jobs will be lost. Failure means tax revenues will continue to collapse and that public services and pay will be slashed. Therefore, failure is not an option.