April 5, 2016 – Il Sole 24 Ore published an editorial by SEP Senior Fellow Carlo Bastasin, in which he discusses the economic instability surrounding emerging economies. He brings up an internal discussion within the IMF over the potential that Brexit could catalyze a new crisis in Greece. He argues that this environment of potential instability creates constant risk, and Italy would do well to make sure the euro area completes the Banking Union. Yes, it can be argued that the Franco-German approach has led to excessive severity when it comes to the Italian banking system, especially with regard to the rigid application of bail in. However, it is more important to prepare for the next crisis, especially in light of current global uncertainty.
- The original article (in Italian) is available from Il Sole 24 Ore.