Eurozone: Feeling the stress
How credible are stress tests and what impact will they have on the Eurozone’s economy?
Fears are growing that Italy could become the latest victim of the Eurozone’s debt crisis. Worries over the euro currency are growing and plans for a second Greek bailout remain deadlocked.
Also the European Banking Authority has conducted stress tests on several banks across Europe, to see how they can handle difficult economic scenarios.
So what is the stress test and how important are they to the Eurozone’s economy?
Inside Story, with presenter Hazem Sika, discusses with guests: Sony Kapoor, the managing director of Re-Define, a think-tank that advises policy makers on economic and financial sector policy; Patrick Garofalo, the economic policy editor for ThinkProgress.org at The Centre for American Progress; and Hank Calenti, the head of bank credit research at Societe Generale.
This episode of Inside Story aired from Friday, July 15, 2011.