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EU’s flawed banking system

The announcement of the latest EU banking union pact on March 20th was warmly welcomed by EU policymakers and analysts. The Single Resolution Mechanism (SRM) emergency bank bailout fund looks however underfunded and slow, and thus lacks the credibility needed to restore confidence in the Eurozone. There are provisions that leave each member states’ contribution to bailout a … Continue reading


Is QE the answer to the EU’s economic woes?

Austerity programs imposed on PIIGS countries have failed. Italy’s weak economy faces “Japanification” – slow growth and an aging population bring intractable deflation and stagnation- and its sovereign debt levels are unsustainably high. Everything suggests the EU’s third largest economy – moving very slowly with reforms – will not be able to lower its debt/GDP ratio by … Continue reading