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Despite the recently established banking union, the Dutch taxpayer is still forking out for failing banks, the Senate learned today during a debate with Finance Minister and Eurogroup head Jeroen Dijsselbloem.

Foto: SP / SP.nl

Newly-elected SP Senator Bastiaan Van Apeldoorn receives congratulations from Senate Chair Ankie Broekers-Knol.

SP-Senator Bastiaan van Apeldoorn got the chance in making his maiden speech today to interrogate Finance Minister and Eurogroup chief Jeroen Dijsselbloem regarding the banking union. Although the banking union has been established in Brussels to avoid the taxpayer having to pay for bankers’ mistakes, the way in which it is to be applied does not promise a structural solution. Van Apeldoorn confirmed the suspicion that this banking union in its present form simply won’t work. ‘The Dutch taxpayer will be paying in the next few years a billion euros to a fund that will have to rescue banks if they threaten to fail.’

In his speech Van Apeldoorn argued that the banking union is no more than the semblance of a solution. Banks must become smaller to prevent their growing – yet again – ‘too big to fail.’ Van Apeldoorn proposed that banks be split into business banks and consumer banks, so that they don’t become too big to be allowed to get in so far over their heads that they then have to be rescued with taxpayers’ money. Finally, the new SP Senator drew attention to the democratic deficit that this banking union threatens to create, as the Dutch Parliament hands over some of its powers.

'The banking union is no structural solution to the dangers presented by huge banks and will cost the taxpayer a great deal of money,’ he concluded.