Thursday , August 5 2021

Frankfurt: Italy's debt can pollute Europe – Economy

"We see renewed concerns about debt sustainability in Europe in the public and private sectors," said Luis de Guindos, vice president of the European Central Bank (ECB), in his speech. Said. . Italy is currently the İH most important case un with public debt representing 130% of its gross domestic product (GDP), and the budget project is a source of political tension.

While the transmission to other European countries "has remained so limited", but "remains a possibility", while pointing to the central banker, the market once again worried about the tight link between banks and country risk "in some parts of Europe".

The ECB Vice President said on Thursday that Italian borrowing rates are at the "highest four years" level, and that he risks "future contamination". tensions ".

Shock absorption

But on Friday, the Italian government confirmed that it does not intend to review its budget for next year, with the risk of meeting with Brussels and its European partners.

In the private sector, the banker said that the banking sector has become olan smaller and more resistant hale and hale our radar is shifting to the weaker regulated non-bank financial sector. Bank Said. At the end of 2017, the euro zone investment funds accounted for 42% of the total assets of the banking sector, reaching a total of 12,000 billion euros (13,700 billion francs). he called back.

This may eventually "punish the financial system's ability to absorb shocks". (Ps / NXP)

Created: 12.11.2018, 13:47

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