Radford Taylor Partners - Euro Zone Not Ready to Face New Crisis

TAIPEI, Taiwan, November 5, 2018 (Newswire.com) - Analysts at Taipei, Taiwan based investment house, Radford Taylor Partners say there does not appear to be any risk of fallout from Italy’s recent budget crisis for the European Union but French finance minister Bruno Le Maire has stated that the euro zone is currently not properly prepared to deal with a new economic crisis.

Last week, Italy’s draft budget for next year was rejected by the European Commission. Never before had the European Commission rejected a budget proposal put forward by any of the European Union’s member states. But Italy’s draft budget broke a number of EU regulations on public spending and the European Commission requested that Italy put forward a significantly revised version within three weeks. Radford Taylor Partners analysts say that Italy will face disciplinary measures by the European Commission if it is unable to comply.

In a recent interview, Le Maire stated that there were no signs of contagion in Europe because of Italy’s budget crisis. He hoped that Italy would take the opportunity offered by the European Commission to amend its budget draft for next year.

Le Maire does not believe that the Eurozone is sufficiently prepared to deal with the possibility of a new economic or financial crisis. He stated that it is imperative that the European Union and all its member states do what is required to fortify the banking union and improve the euro zone investment budget.

Radford Taylor Partners analysts agree with euro zone policy makers who feel that Italy’s issues with Brussels will likely delay the reform progress and could have a long term negative impact.

Source: Radford Taylor Partners