As all signs point to a trade war with the United States, should the US impose tariffs on EU steel and aluminum, the European Union has decided to immediately activate balancing measures as an alternative to US tariffs which are intended to take effect on Friday June 1st.
Concern about Italy is the order of the day and the situation in that coutry will continue to grab investors’ attention. To such an extent that a photograph of what’s going on there is required, starting with this key question: we are facing a problem of public, not private debt.
Ioannis Glinavos via Macropolis | The creation of a populist government in Italy has sent shivers down the spines of those who have been following developments in Greece since 2015. Indeed, there are enough similarities to give rise to concern. The following discussion offers three key reasons why Italy (and Europe by extension) is about to head into some serious trouble.
By Israel Rafalovich | Things have changed on the international political stage, and the European in particular, that gives the European Union an unprecedented opportunity to mould and shape its own military and foreign policy in a way that makes it possible for the EU to deal with crisis on the European continent and elsewhere without American interference.
The two parties that are about to form the next Italian government are driven by a profoundly anti-democratic culture. Their claim to so-called direct democracy exercised via the web on a platform owned by a private company is not just a staple of populism, but an attempt to fuel general discourse against any party in the name of the people.
The European Commission (EC) could announce this week the details of a new sovereign bond, which would allow for progress to be made in the financial and banking union. According to the EC, it would provide greater financial stability both for governments and European banks in the face of future hypothetical financial crises.
The alliance between two parties with extreme ideologies which are poles apart has created an unorthodox programme for government in Italy, which could heighten financial instability in the EMU.
At last, the Greek economy seems to be in a much more solid position. Greece once again saw positive growth rates in 2017 and it’s expected to maintain a growth rate of around 2% over the next two years. In spite of this, the financial sustainability of Greece’s public sector remains in doubt.
J.L.M. Campuzano (Spanish Banking Assocation) | We are echoing the IMF’s recent report on the evolution of the European economy. All of Europe is seeing growth, but this has dynamic has to be supported by structural reforms which boost potential growth and best financing to achieve this.
Italy’s new coalition government seems to be paving the way for the country to abandon the common currency. Fortunately there are still many voices to be heard: European partners who are not willing to see their 4th biggest member leave, EU treaties, financial markets and Italy’s president.