Germany’s bank problems are all of Europe’s

Forget Italy. Germany is still the biggest banking problem in Europe; not just because the market itself is poor and destabilizing but also because it negates the possibility of a world-beating continental banking sector. Germany is Europe’s heart: geographically, economically and strategically.

There will be no convincing claim to continental dominance without big market shares in both Germany and France. This is why the French are on the offensive and why Germany remains the battlefield of European banking – even though it is barely worth fighting over.