GETTY Germany central bank, the Deutsche Bank, would be hit hard in a new financial crisis

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Martin Hellwig said stress tests carried out by the European Central Bank revealed the Deutsche Bank would be left in a precarious position in the event of another financial crisis. While it would probably not go bust in a fresh downturn - he predicted the bank which is crucial to the German economy would face serious equity problems. He said: "Putting it short: for a long and serious crisis there simply wouldn't be enough money."

GETTY The twin towers of the Deutsche Bank HQ

Putting it short: for a long and serious crisis there simply wouldn't be enough money Martin Hellwig

The Berlin government has previously only bailed out the banks under extreme circumstances but Mr Hellwig, director of the Max Planck Institute for Research on Collective Goods, backed the idea of using taxpayers' money to fund public sector investment. He said: "Turning banks into community property through public funds is not only possible but also necessary. "If a bank is no longer able to help itself, the federal government should take on shares and exercise the related control functions."

GETTY Deutsche Bank headquarters in Frankfurt

He continued: "In Sweden the state stepped in in 1992, filleted out unprofitable divisions and left stable companies. "It was a successful, temporary nationalisation. The goal had always been to enable a clean-up and to then get out again." He said nationalisation may not have been part of Germany's plan since the last financial crisis but unusual scenarios sometimes require desperate measures and would be appropriate for banks as such a large part of the economy is entirely dependent on them.

GETTY Deutsche Bank