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The eurozone is on the brink of a new stress test, writes the German newspaper Die Welt, referring to estimates by leading economists. The reason is a sharp increase in public debt due to the coronavirus. Italy has a particularly large debt, the FOCUS News Agency reported.
“There is a risk of a Euro 2.0 crisis,” the publication quoted Lars Feld, a member of the German government’s Council of Economic Experts. The ECB is currently stabilizing markets by buying government bonds. According to Feld, thanks to this, EU member states are now experiencing no financial problems.
However, the ECB’s activities are increasingly criticized. According to Commerzbank chief economist Jörg Kramer, the ECB is increasingly becoming a “financial and political exploiter”. Kramer believes that the ECB is reducing countries’ readiness for reform through its actions, and is also contributing to the creation of dangerous bubbles in real estate markets.
According to the publication, economists consider debt relief as one of the possible solutions to the problem. Clemens Fust, president of the Munich Institute for Economic Research, believes that Italy’s debt should be reduced first. Fust points out that this step is necessary to avoid a banking crisis.
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