A Quiet Crisis?

While Brexit may be dominating the headlines at the moment, some experts believe that a debt of €360bn in bad loans within a fragmented Italian banking sector, could be the biggest threat of all.

The suggestion is that even a “small crisis” could trigger a chain of events that could potentially threaten the stability of the European Union, credit ratings agency Moody’s is reported to have said.

Brexit – if the UK votes to leave the 28-nation union – or even Grexit – the departure of Greece from the Eurozone – are the obvious vulnerabilities. But some commentators believe an altogether quieter crisis should also be at the top of the worry list: Italy’s so-called battle to prop up its debt-laden banks.