As a whole, Italian banks have non-performing loans (NPL) worth 198bn euros. Add in so-called “sofferenze”, i.e. debt at risk of non payment, and the total amount rises to 360bn euros. The Italian government has strong-armed the banks into setting up a fund – called “Atlante” – that will act as a backstop for banks that are trying to raise capital and cannot find buyers for their new share issues. Unlike the myth it echoes though, Atlante is not strong enough. And, with Mr Renzi, Italy’s PM, putting his legitimacy at stake with the referendum coming up in October, the government might not have the ability and time to do anything better.
READ MOREThe arbitral tribunal under the United Nations Convention on the Law of the Sea (UNCLOS) recently ruled overwhelmingly in favor of the Philippines in its case against China’s maritime claims in the South China Sea. After a month, however, the contested waters of Southeast Asia remain mired in military tensions, with little attention given to the “voiceless victims” for which the stakes are higher: the coral reef ecosystems – and the people whose living rely on them.
READ MOREThe elephant in the room is now too big to be ignored and too obvious to be buried in mumblings.
READ MOREWith anti-Europe sentiment rising through Member States, the EU is facing a crisis of faith. The Energy Union provides an argument for continued European integration, with energy democratisation as the key to its success.
READ MOREIt has been a rough couple of years for the EU with much debate in academia on its various deficiencies. However, with the financial crisis, the almost Grexit, the refugee crisis and now the Brexit, these struggles have also entered the everyday life of ordinary citizens. For many EU enthusiasts the past years of crisis seemed more like a minor hiccup, a difficult period that could be overcome if everyone just kept on moving forward. Yet, the Brexit vote changed everything.
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