“EU politicians could have been blackmailed by banks” - economist

European politicians could have been blackmailed by the financial community in order to pile cash to rescue the EU periphery and thus save the banks, believes economic analyst and author Michael Mross.

We are living in a so-called capitalism. But this is ridiculous because the capitalism doesn’t work anymore. Every country is being bailed out. We have something like bank socialism, because as we are told, I doubt if there is no other choice, if we let Greece or Portugal go bankrupt, this is a normal procedure in a capitalistic system, then the banks will suffer and the banks will go bankrupt,” he explained.

“As a matter of fact, in Germany or in France the banks are full of the Greece debt. And some people say that maybe the politicians have been blackmailed by the financial community in order to give money of the taxpayers to make the banks survive,” he said.

In the wake of EU's recently-agreed pile of cash to rescue Portugal, doubts over the efficiency of such bailouts grow louder inside the bloc.

German Chancellor Angela Merkel had strong words for Greece, Spain and Portugal for asking for money while doing little to solve the problem themselves by raising retirement ages and reducing public holidays.