In the last two months, "renewed pressures" have emerged on the markets as the eurozna faces "three key risks" that threaten the financial stability of the euro area. The first is "a potential worsening of the public debt crisis of the euro area countries“. That's what she writes European Central Bank in its latest financial stability report.
The second major risk factor according to the ECB lies in the “profitability of banks, which may be undermined by weakening economic growth and be associated with increases in losses on loans and portfolio assets”.
The third key risk still concerns the banks and in particular "the excessive rate of divestment of assets" (deleveraging) due to the abrupt changes in the business model.
Not very encouraging forecasts also come today from the Italian Deputy Economy Minister, Victor Grilli: “Between November and December the situation was very serious – he recalled -. I hope the events of the last few weeks and days bring an important message to everyone: the situation remains very difficult in Europe and, therefore, also in our country. We have a lot to do to renew our system”.
Grilli underlined that Italy has "many strengths to be able to build a winning model again", as happened after the war. Among these, the Deputy Minister of the Economy mentioned in particular businesses and their ability to create wealth and to be competitive on the markets.
