Good news from the eurozone. Portugal has followed Ireland out of a three-year debt relief programme, having halved its budget deficit. And the latest bank stress tests from the European Banking Authority (EBA) actually “have some teeth”, says George Hay on Breakingviews.
Two past attempts to reassure investors and regulators that banks would not collapse if the economy deteriorated sharply failed completely.
In 2010, regulators’ stress tests gave Irish banks a clean bill of health – four months later they imploded. The following year, a Spanish and a Dutch bank that had passed the tests subsequently went bust.
This time round, the [...]
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