{"id":44071,"date":"2019-02-26T18:30:08","date_gmt":"2019-02-26T23:30:08","guid":{"rendered":"https:\/\/olduvai.ca\/?p=44071"},"modified":"2019-02-26T18:30:11","modified_gmt":"2019-02-26T23:30:11","slug":"new-economic-or-financial-crisis-in-the-eurozone-could-start-in-italy-french-government-frets-%ef%bb%bf","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=44071","title":{"rendered":"\u201cNew Economic or Financial Crisis\u201d in the Eurozone Could Start in Italy: French Government Frets \ufeff"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/wolfstreet.com\/2019\/02\/23\/new-economic-or-financial-crisis-in-the-eurozone-could-start-in-italy-french-government\/\">\u201cNew Economic or Financial Crisis\u201d in the Eurozone Could Start in Italy: French Government Frets <\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>French banks are heavily exposed to Italy.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cDon\u2019t underestimate the impact of the Italian recession.\u201d This was the stark warning from French Economy Minister Bruno Le Marie in an&nbsp;<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2019-02-20\/le-maire-says-italian-recession-threatens-france-s-economy\" target=\"_blank\" rel=\"noreferrer noopener\">interview<\/a>&nbsp;with Bloomberg News. \u201cWe talk a lot about Brexit, but we don\u2019t talk much about an Italian recession that will have a significant impact on growth in Europe and can impact France because it\u2019s one of our most important trading partners.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Italy\u2019s economy as measured in real GDP shrank for two quarters in a row, which puts it into a \u201ctechnical recession\u201d:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/wolfstreet.com\/wp-content\/uploads\/2019\/02\/Italy-GDP-2018-q4.png\" alt=\"\" class=\"wp-image-48614\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s the second time in four months that France\u2019s Economy Minister has expressed deep concern about the Italian economy in public. At the end of October he\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/uk.reuters.com\/article\/us-eurozone-france\/euro-zone-not-prepared-enough-to-face-new-crisis-french-finance-minister-idUKKCN1N2099?utm_source=applenews\" target=\"_blank\">urged<\/a>\u00a0the commission to \u201creach out to Italy\u201d after the EU\u2019s executive had rejected the country\u2019s draft 2019 budget for breaking EU rules on public spending. Le Maire also conceded at the time that while contagion in the Eurozone was definitely contained, the Eurozone \u201cis not sufficiently armed to face a new economic or financial crisis.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The French government is now openly worried that such a crisis could begin in Italy. The economies of both Italy and France are tightly interwoven, with annual trade flows of around \u20ac90 billion. More important still, French banks are, by a long shot, the biggest owners of Italian public and private debt, with total holdings of \u20ac311 billion as of the 3rd quarter of 2018,&nbsp;<a href=\"https:\/\/www.bis.org\/statistics\/b4-IT.pdf\">according to<\/a>&nbsp;the Bank for International Settlements \u2014 up \u20ac34 billion from the 1st quarter of 2018.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u201cNew Economic or Financial Crisis\u201d in the Eurozone Could Start in Italy: French Government Frets French banks are heavily exposed to Italy. \u201cDon\u2019t underestimate the impact of the Italian recession.\u201d This was the stark warning from French Economy Minister Bruno Le Marie in an&nbsp;interview&nbsp;with Bloomberg News. \u201cWe talk a lot about Brexit, but we don\u2019t [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5660,333,24491,4255],"class_list":["post-44071","post","type-post","status-publish","format-standard","hentry","category-economics","tag-don-quijones","tag-france","tag-french-banks","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44071","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=44071"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44071\/revisions"}],"predecessor-version":[{"id":44072,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44071\/revisions\/44072"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=44071"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=44071"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=44071"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}