Italy. Professor Tooze: The bailout fund is unusable. No country that needs it will touch it.
Italy is in more danger than the eurozone will acknowledge
There does not appear to be a majority in the Italian parliament for ESM support.
Nor is it clear that the ECB would agree to trigger OMT. The argument is that it is not intended to address looming insolvency.
There is zero appreciation in Germany, and, I suppose, the Netherlands too, of a potentially catastrophic downside to their financial sectors and their economies were Italy to default.
Wolfgang Münchau 19 April 2020
Professor Tooze, author of Crashed: How a Decade of Financial Crises Changed the World, says the angry North-South clash over recent weeks has removed the “fig leaf” of the ESM.
The bailout fund is unusable. No country that needs it will touch it.
Ambrose Evans-Pritchard, Telegraph 14 april 2020
There does not appear to be a majority in the Italian parliament for ESM support.
Nor is it clear that the ECB would agree to trigger OMT. The argument is that it is not intended to address looming insolvency.
There is zero appreciation in Germany, and, I suppose, the Netherlands too, of a potentially catastrophic downside to their financial sectors and their economies were Italy to default.
Wolfgang Münchau 19 April 2020
Professor Tooze, author of Crashed: How a Decade of Financial Crises Changed the World, says the angry North-South clash over recent weeks has removed the “fig leaf” of the ESM.
The bailout fund is unusable. No country that needs it will touch it.
Ambrose Evans-Pritchard, Telegraph 14 april 2020
Kommentarer