By the end of last week Italy had a new government and calm had returned to markets after a brief flare-up, but in terms of drama it didn’t come close to matching the worst of the crisis in 2011 and 2012, according to analysts at RBS.
Key Quotes
“A lot’s changed since then. The economy is growing, the budget deficit is healthier, interest rates are lower (partly thanks to central bank quantitative easing) and the average maturity profile of government debt is longer. But events were a reminder that not all is right. Growth is still sluggish, government debt is the world’s third largest (132.5% of GDP, though private debt is low) and there are unresolved issues in its financial system. More than enough to warrant a watchful eye.”
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