Home » today » Business » Die Welt: The coronavirus threatens the EU with a brand new debt disaster – 2024-05-18 06:31:30

Die Welt: The coronavirus threatens the EU with a brand new debt disaster – 2024-05-18 06:31:30

/ world right this moment information/ The coronavirus pandemic and the associated improve in authorities debt might set off a brand new monetary disaster within the EU, writes Die Welt. In Italy, there’s a notably troublesome scenario: in response to some economists, it’s vital to cut back the debt burden of European nations in an effort to keep away from a banking disaster.

The Eurozone is on the verge of a brand new take a look at of power, writes Die Welt, citing estimates from main economists. The reason being a pointy improve in authorities debt because of the coronavirus. Italy has a very excessive debt. “There’s a danger of Eurocrisis 2.0″, Lars Feld, a member of the Council of Financial Consultants of the German Authorities, quotes the publication.

The ECB is presently stabilizing the markets by shopping for authorities bonds. In accordance with Feld, due to this, EU member states are actually not experiencing monetary issues. Nevertheless, the ECB’s actions are more and more coming beneath criticism, says Die Welt. In accordance with Commerzbank Chief Economist Jörg Kramer, the ECB is more and more changing into “a monetary and political exploiter’. Cramer believes that the ECB, by means of its actions, reduces the readiness of nations for reforms and likewise contributes to the creation of harmful bubbles in actual property markets.

In accordance with Die Welt, as one of many attainable options to the issue, economists think about debt reduction. Clemens Fust, president of the Munich Institute for Financial Analysis, believes Italy’s debt must be lower first. Foust notes that this step is important to forestall a banking disaster

Translation: world right this moment information

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