Neil Unmack is a Reuters Breakingviews columnist based in London. He covers credit markets, hedge funds, and Italy. Previously he was a corporate finance reporter at Bloomberg News in London. He started his career as a financial journalist in 2001 at Euromoney Institutional Investor, where he covered structured finance for EuroWeek magazine. He was educated at Eton College and Oxford University, graduating with a first class degree in modern languages. Follow Neil on Twitter @unmack1
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Can one crisis solve another? Securitisation could help small companies. That slicing and dicing of credit risk also caused the last credit boom. Getting it moving fast would require support from the ECB and governments, and the belief that past mistakes won’t be repeated.
A banking union will be flawed without a central resolution authority, but that may mean a cumbersome treaty change. Any compromise could only be a stop-gap. That won’t derail the project, but it will leave Europe’s crisis defences weaker for some years.
The former ECB board member thinks the Italian government should seek aid to make its reforms credible. Yet markets’ current docility makes a bailout less necessary, and politically more improbable. The comments mostly highlight the euro zone’s shortage of both carrots and sticks.
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- Portugal marks triumph of Draghi bluff
- Apple debt shows revival of yield desperation
- BBVA's hybrid hit is bet on health of Spanish bull
- Germany's Spanish initiative sends right message
- Euro zone spread monster is only half-dead
- Italian stasis ends, mission impossible begins