The general meme outlining the Italian banking crisis usually goes something like this, (to paraphrase from many other articles...not Wolf's)...
"The Italian government wants to increase spending to spur economic activity. But European leaders, led by Germany, are attempting to enforce rules limiting budget deficits. And Italian banks are holding tight to cash and are reluctant to lend, starving an already anemic economy of capital.
Which leaves Italy and Europe with a catch-22. Europe may never regain economic vigor so long as Italy’s banks are a slow-motion emergency. But Italy’s banks cannot get healthy without growth. And Italy’s economy can’t grow without healthy banks." And here is where I typically see a mention of many factors, among them some "demographic challenges".
Which leaves Italy and Europe with a catch-22. Europe may never regain economic vigor so long as Italy’s banks are a slow-motion emergency. But Italy’s banks cannot get healthy without growth. And Italy’s economy can’t grow without healthy banks." And here is where I typically see a mention of many factors, among them some "demographic challenges".