×
![]()
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
QE has failed. What comes next?
Eurozone economies have been subjected to expansionary monetary policy for almost five years, and the easy-money approach has failed to jump-start demand and ignite growth. As central bankers begin to face this reality, they may have to choose between shoring up government indebtedness and letting banks go bust, or giving ...
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 ...
The next Greek bailout (or not)
As Brussels and Athens prepare for new negotiations on the Greek debt in 2017, another flawed bailout deal is on the cards. Neither side is ready to act on the knowledge that Greek public finances are still unsustainable. Postponing the day of reckoning through debt monetization might be the most ...
Peru 2015: inept leadership threatens to undermine growth in spite of strong fundamentals
The last decade and a half of spectacular growth has made Peru a showcase for Latin America’s success. The country has built up a sizeable middle class and reduced poverty. Its democracy is functional and its economic fundamentals are exceptionally strong. Unfortunately, the poor leadership provided by many of Peru’s ...
