It could be a little time bomb on the financial planet.
Since the surge of the Covid crisis, European banks have shown a new addiction to public debts in general, and in particular to those of their own country.
A phenomenon that dangerously links the health of a country's financial sector to the strength of its national public accounts, in a context of widespread debt boom.
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This side effect of the muscular action of the European Central Bank (ECB) to protect the economy awakens bad memories of the sovereign debt crisis in the wake of the financial crisis, between 2012 and 2015. The risk is that
“d 'a return of the pernicious loop through which the banks of a country and their national government reciprocally reinforce their respective insolvency risks, ”
explains Éric Dor, economist at Iéseg, author of a study on the subject.
The increase in the holding of national debts by banks
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