EU Shadows

Confirming all that investors are thinking about the political challenge across the European Union, the recent influential voices correctly point the seriousness of the Political dysfunction of most of the European Countries composing the Single Currency Euro. Credit analysts in the Global Banks are rightly positioned to view this issue given the importance of Capital and Credit Markets for political and Economic developments in the Eurozone, and as Alberto Gallo from RBS tells John Authers in the video below the operational challenges are huge and specially so for Banks in France, Spain and Italy.

Bruegel: Europe must clean the banks!

The excellent video that accompanies this post is from the European Think-thank Bruegel. And it is a very clear vindication for the enforcement of a sound Banking system in Europe and in the Southern Countries of the Euro area in particular. Along the way it is proposed a few ways to financing Small & Medium Enterprises (SME), like the creation of fully Public backed Investment Banks or the granting of access to securitisation for SMEs (my preferred). The full report (pdf) can be found here, where you will check the source of the video as well.