Deutsche Bank chief economist calls for European bank bailout

EU-Euro-Europe-Eurozone-700x450.jpgDeutsche Bank’s chief economist David Folkerts-Landau has called for a €150bn bailout of European banks, warning Europe is “seriously ill”.

Speaking to German newspaper Welt am Sonntag, Folkerts-Landau says that Europe needs to inject capital into the European banking system.

“Europe is seriously ill and needs to address very quickly the existing problems, or face an accident,” he says.

In particular he highlighted Italian banks, which have faced concerns over the size of their non-performing loan books.

He warned that the problems with European bank stocks are a result of wider problems in the economy, such as low growth, high debt and dangerous levels of inflation.