Report
Patrick Artus

What could trigger another euro-zone crisis?

There is currently no sign of a crisis in the euro zone. In particular, yield spreads between the countries are low and stable. But is there reason to fear another euro-zone crisis in the future? What could cause one? Probably, the worst risks are: The current transitory inflation becoming permanent inflation, which would force the ECB to sharply raise interest rates and stop controlling yield spreads; Failure of the “Draghi reforms” and continued zero potential growth in Italy; The introduction of stringent new fiscal rules, forcing euro-zone countries to sharply reduce their fiscal deficits, like after the subprime crisis.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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