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the market fears from the eurozone on Italy's budget plans "have increased compared to May". Underline this is the BCE in the Financial Stability Report, explaining that "the tensions on Italian government bonds remind us of how quickly political uncertainty can lead to a change in confidence in the market attitude and an increase in the premium of risk".
The document goes on to say that, despite the concerns expressed, "the losses observed in the Italian financial market over the last six months due to political uncertainty have not spread significantly to other countries in the euro area".
In any case, they warn since Frankfurt, the financial stability situation became more difficult than in May. And they explain that "on the one hand, the economic growth and the greater resilience of the banking sector have continued to support financial stability in the euro area and that a series of volatility factors are not Is not extended to the entire global financial system ", but, on the other hand," the risks to global growth prospects have become more pronounced since May due to the resurgence of protectionism and tensions in emerging markets ".
Finally, the Brexit factor, according to the ECB, represents a "risk" for financial stability in the euro area. The Eurotower therefore warns banks and all financial institutions "to prepare for any outcome" on the subject, including the dreaded "no deal".
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