×
![]()
The MPS bailout and the future of EU banking
Founded in 1472, MPS is the oldest bank in the world. Italian politicians were loath to let it go bust, but European markets were prepared for it to fail (source: dpa)
General info
What's inside
- Italy bailed out MPS, even though its failure did not present a systemic risk
- The EU’s consent to the bailout shows a protectionist, anti-competitive outlook
- In the future, EU bail-in rules are likely to be flouted again
- More bailouts in Europe will further burdening budgets and taxpayers
Who will benefit?
- Report is targeted to the decision makers in cross country manufacturing – suppliers, manufacturers, logistics.
- Also considered useful for the administrative university facilities, to better understand the possible effects of current decisions.
Suggested reports
Italy’s referendum and the specter of instability
On December 4, Italians will go to the polls in a referendum on amending their constitution. Prime Minister Matteo Renzi has said he will resign if the changes are rejected. A win for the opposition could be seen as a populist turn for this highly indebted country, bringing instability domestically ...
Central banks and corporate bonds
The latest scheme to have the European Central Bank buy corporate bonds is unlikely to turn quantitative easing into an effective stimulus policy. But there may other motivations at work. As a camouflaged bailout for big European banks and a bureaucratic carrot to slow corporate flight, expanded debt purchases make ...
Europe’s choice: global player or dependence
Europe runs the risk of again being caught in the great tug-of-war between East and West. Its geopolitical imperatives require it to maintain strong ties with the U.S., while talking on a level playing field with Russia and trading freely with Asia. To do so, it must find its identity, ...
Italy’s 50-year bond: an ill omen?
What’s not to like about Italy’s first-ever 50-year bond? October’s brilliantly successful sale may set the template for other eurozone governments. But investors should take note that it was far from a vote of confidence in Europe’s financial and economic prospects.
