Euro-Zone Crisis Doom Loop Revisited by S&P in Warning for 2024
- Ratings company looks at entanglement of banks and sovereigns
- Problems in one ‘can have devastating ripple effects’ on other
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Euro-zone countries haven’t broken the link between public finances and banks that dominated the region’s sovereign debt crisis, and investors could refocus on that vulnerability next year, S&P Global Ratings said.
Despite the establishment of common supervision and resolution mechanisms aimed to eradicate such dangers, the entangled relationship that bred turmoil in several members of the single currency is “here to stay,” the company said in a report on Thursday.