The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

Europe’s day of reckoning cannot be delayed forever

For the briefest of moments the news of European Union plans to bail out eurozone members that could not meet their debt obligations brought a sense of calm to the market.

The announcement a few days later that the Bank of Spain was taking over Spanish savings bank CajaSur put an end to that.

Banks are still failing, entire countries appear to be on the brink. The problem remains the vast amount of debt, whether in the public or private sector, that hangs over Europe’s economies.

However, every measure taken to find a solution involves at best passing the parcel of debt from one sector or entity to another or, worse, the addition of new debt.

At some point this has to stop. The question is simply how bad the fallout will be when it does. One banker told Euromoney this month: "It’s not inconceivable that there’s a solution that does not involve catastrophe." He has reason to be cautious in his optimism.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree