Without a European approach to banking sector repair, if the sovereign intervenes to break the feedback loop by recapitalising or resolving banks, it may only heighten market concerns about its debt sustainability and aggravate the situation. a.
The serious situation in Italy, like the dramatic drifting in Greece, might it not be linked to an obsolete economic structure, not only to the high public debt? My message is clear: it is essential that all those measures that allow full exploitation of Italy’s medium and long-term economic potential are introduced.