Italy could need EU rescue within six months, warns Mediobanca

Italy is likely to need an EU rescue within six months as the country slides into deeper economic crisis and a credit crunch spreads to large companies, a top Italian bank has warned privately.

Mediobanca, Italy’s second biggest bank, said its “index of solvency risk” for Italy was already flashing warning signs as the worldwide bond rout continued into a second week, pushing up borrowing costs.

nefti: Is the euro crisis over again yet?

weskiwi: Crisis!  What crisis?

captain_badger: No, it still exists.

ultimatequestion: It's like the boy with his finger in the hole of the Dutch Dyke. And the tide is still rising.  Not just the little lad will get drowned, all the people on the polder will as well, as the Mayor has told them that the brave boy will save them, and that the tide is going out.

Akula971: The boy has his finger in the dam, whilst the water pours over the top drowning him.

ooopiop: How many boys with how many fingers in Dutch dykes does it take for this deeply disturbing image to  fully penetrate the imagination?

cargill55: Very clever :). Yes and no perhaps.

Blackfox: 10/12/2009 – Brian Lenihan, Irish Minister of Finance: “Our plan is working. We have turned the corner.” 09/07/2010 – Jürgen Stark, ECB Chief Economist: “[T]he worst is over…The I.M.F. is underestimating the strength of the economy in Europe.” 29/01/2011 – Christine Lagarde, French Minister of Finance: “I think the euro zone has turned the corner.” 10/03/2012 – Herman von Rompuy, European Council President: “[P]roblems have not yet finished, but the worst of the crisis is over.” 13/03/2012 – Wolfgang Schauble, German Minister of Finance: “We can say that the worst is behind us, but we cannot relax our efforts.” 13/03/2012 – Mario Monti, Prime Minister of Italy: “The most acute phase of the crisis appears to be definitely over but this is no reason for us to relax.” 13/03/2012 – Francois Baroin, French Minister of Finance: “If the question is whether the worst of the crisis is behind us, one can say yes … If we do not deviate from our path, the worst is behind us.” 22/03/2012 – Mario Draghi, President of the ECB: “The worst is over, but there are still risks. The situation is stabilising.” 27/03/2012 – Nicolas Sarkozy, President of France: “I think we came out of the financial crisis, that confidence is restored and we are in the process of economic recovery…Europe has an economic government which overcame the Greek crisis.” 27/03/2012 – Olli Rehn, European Commissioner for Economic and Monetary Affairs and the Euro, “The crisis in Greece is a challenge for the Greek society and for the EU. It is the legacy of years of irresponsible policies. Thanks to European solidarity, we avoided the worst, a social disaster.” 28/03/2012 – Herman von Rompuy, European Council President: “[W]e have turned a corner.” 28/03/2012 – Mario Monti, Prime Minister of Italy: “You all know that the eurozone has gone through a crisis, a huge crisis. I believe this crisis is now almost over.” 18/10/2012 – François Hollande, President of France: “The worst is over.” 19/11/2012 – Mariano Rajoy, President of Spain: “There are doubts about the irreversibility of the euro, it’s true that there were more a few months ago than today…I’m totally and absolutely convinced that the worst has passed.” 27/12/2012 – Wolfgang Schauble, German Minister of Finance: “I believe the worst is past.” 07/01/2013 – José Manuel Barroso, President of the European Commission, “I think we can say that the existential threat against the euro has essentially been overcome.” 09/01/2013 – Herman von Rompuy, European Council President: “Firstly and most importantly, the worst is behind us, in particular the existential threat to the euro.” 10/01/2013: Herman von Rompuy, European Council President: “The worst is now behind us, but not all is right, far from it.” 11/01/2013: Wolfgang Schauble, German Minister of Finance: The single currency is “over the worst of the crisis” 14/01/2013: Jean-Claude Juncker, President of the Eurogroup, “[T]he worst is probably over, but what we still have to do is difficult.” 16/01/2013: Ewald Nowotny, Member of the ECB Governing Council: “The crisis is not over yet, but the worst is over.” etc…

giovanna: Is it the list for the guillotine?

ultimatequestion: Who do you believe the most? This lot above, or Nigel Farage: "If Spain goes, Europe on its own will not be big enough to save the banks." "The situation in Greece just goes from bad to worse. We’ve now got a situation where there was the big suicide a few weeks ago, where a 77-year-old man shot himself in the head outside the Greek Parliament. That was the public face of what’s gone wrong." "But do you know that every day there are people that are literally leaving their children at the doors of the Greek Orthodox Church, with notes around their necks saying, ‘We cannot afford to feed or look after these children, please take them from us.’ Can you imagine that?" "This is taking place inside Europe. This is taking place inside a once great nation. The nation that invented democracy. We are on the edge of total social breakdown. And frankly, as far as the euro is concerned and the austerity measures are concerned, the medicine is killing the patient." "I do think that the banking system is now in the most perilous state we’ve seen in over 70 years.” "Basically, Herman van Rompuy wants the European Union to become a debt union, which may be acceptable to some of the southern countries who are effectively bust. To the northern countries, it is not." "We know the costs of Europe. What are the benefits?” “Rather than bring peace and harmony, the EU will cause insurgency and violence.” "We wouldn't want to be like the Swiss, would we? That would be awful! We'd be rich!"

Akula971: “Rather than bring peace and harmony, the EU will cause insurgency and violence.” Part of the plan? Then they could further restrict freedoms under a state of emergency.  In all this banking turmoil the politicians are saying that bankers should face jail for their "activities". Very nice, but politicians should also be held to account for their "activities" whilst in office, such as spending more than they raise in taxes.

englander:  "Is the euro crisis over again yet?" We have been told that the euro crisis is over so many times by many different eminent politicians and most recently, by the French president, Francois Hollande.  As they keep on getting this wrong, either none of them has any clue about economics and/or they believe they can simply bullshit their way out of any problem, just like conmen and fraudsters.

Ulysses Returns: This can't be correct. Didn't that nice monsieur Hollande and Mr Rumpypumy tell us that the Euro crisis is over?

LeePefley: Doesn't matter anymore.  A civilization that practices affirmative action, same sex marriage, recreational war, replacement immigration, etc., etc.,  is already moribund.    

Midtown_Bookie: The Great Babylon?

thefront: The fleshpots of Babylon where nice I hear.

ArchiePonsonby: Babylon's nowhere near Nice!

observer20: Now hold on with all this talk of collapse in the Eurozone. They have the ESM to ride to the rescue, which is roughly 60% backed by Greece, Spain, Portugal, Ireland, Italy, Cyprus, Slovakia and France. I think I'm beginning to see a flaw in the plan here.

ultimatequestion: And 40% backed by the Northern European Euro members who look after their cash a little better. When are the peoples of Germany and the other Baltic/North Sea states going to wake up?

robertc: The Euro crisis will be over when the Euro is over.

greyowl: Looks like the Italian Savers are in for a free haircut, given that is the new practice of choice since Cyprus… All hail the wonderful EU, a veritable Utopia !