Belgium, France, Italy and Spain have all imposed 15-day short selling bans to "restrict the benefits that can be achieved from spreading false rumors."
All that has been achieved is to draw attention to how fragile theses European markets are. Once again governments are acting like Stockholm Syndrome victims identifying with their captors (large banks) and protecting them from the forces of free markets. If there is nothing wrong with your underlying business, short selling is absolutely harmless; if there is something wrong with your business, short selling enables those problems to be identified.
All these idiotic governments have done is admit that there is some large problems with European banks.