Rebuilding trust will be the core challenge for Europe, the European Commission, global leaders, and the financial services industry over the next five years. The task won't be easy, for it requires striking a balance between regulation to correct the failings that we have witnessed and the need to preserve dynamic and innovative banks and markets.
BRUSSELS – Today, some people are saying that the storm of the financial crisis is subsiding. I am not so sure. Interbank lending rates are slowly coming down, but they are still far higher than they should be, share prices continue to be volatile, and conditions in global markets remain fragile.
More worryingly, we are seeing the effects on the real economy across Europe, in the United States, and now further afield. GDP is contracting. Industrial production is falling at a record-high pace.
So where do we go from here? The answer is that we have to rebuild trust. That is the core challenge for Europe, the European Commission, global leaders, and the financial services industry over the next five years. It will not be easy.
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It is hard to reconcile the jubilant mood of many business leaders with the uncertainty caused by the war in Ukraine. While there are some positive signs of economic recovery, a sudden escalation could severely destabilize the global economy, cause a stock market crash, and accelerate deglobalization.
warns that the Ukraine war and economic fragmentation are still jeopardizing world growth prospects.
The nation that went to the gates of Moscow in World War II has become as aggressive as a cuddly cat. But with its decision to send Leopard 2 battle tanks to Ukraine, Germany's "culture of reticence," particularly with respect to Russia, may soon be a thing of the past.
examines the origins and implications of the landmark decision to send battle tanks to Ukraine.
BRUSSELS – Today, some people are saying that the storm of the financial crisis is subsiding. I am not so sure. Interbank lending rates are slowly coming down, but they are still far higher than they should be, share prices continue to be volatile, and conditions in global markets remain fragile.
More worryingly, we are seeing the effects on the real economy across Europe, in the United States, and now further afield. GDP is contracting. Industrial production is falling at a record-high pace.
So where do we go from here? The answer is that we have to rebuild trust. That is the core challenge for Europe, the European Commission, global leaders, and the financial services industry over the next five years. It will not be easy.
To continue reading, register now.
Subscribe now for unlimited access to everything PS has to offer.
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