Spain incapable of dealing with crisis: ROK

SEOUL - South Korea's top financial regulator said Thursday that the Spanish government has no capacity to deal with its banking crisis, stressing urgent needs for global community's coordination in rescuing the debt-ridden European country.

"Spain's banking crisis is bigger than the one the Spanish government is now capable of dealing with. The European Union (EU) and the International Monetary Fund (IMF) should provide bailout funds for the country," Financial Services Commission (FSC) Chairman Kim Seok-dong told foreign correspondents.

If Greece were to exit from the euro zone earlier and Eurobonds were to be issued before, the rescue for Spain would have been much easier, Kim said, noting that now we are worried about the European situation because the rescue looked impossible.

Kim said that the European fiscal crisis would be remembered as a milestone event in the global capitalism history, stressing that the crisis will change the trend of the capitalistic concept from the previous neo-liberalistic regime to the new one that will place more importance on the socialistic function of the finance.

After being dominated by the principle of laissez-faire, the global economy was run by the principle of the modified capitalism. The milestone event that brought the change in the global capitalistic history was the Great Depression in the 1930s.

Kim said that the 2008 global financial crisis and the ongoing European fiscal crisis would change the trend of the global capitalism from the previous neo-liberalism to another modified one.