A new headache for the ECB

Italy, the eurozone’s third-largest economy, has debt of €2.759trn – almost 150% of GDP. A crisis there would pose an existential risk to the euro.

Christine Lagarde
Lagarde: struggling to find the answers
(Image credit: © Thomas Lohnes/Getty Images)

European Central Bank (ECB) president Christine Lagarde was a synchronised swimmer as a teenager, says Jill Treanor in The Sunday Times. Now, she is “struggling to keep her head above water” as the eurozone’s periphery feels the pressure from tighter monetary policy and Italian and Spanish bond yields soar to eight-year highs.

Last week, the spread between German and Italian ten-year government bond yields spiked to 250 basis points (2.5%). That is well short of the 500-plus basis points that it reached at the height of the 2011-2012 eurozone debt crisis, but it was enough to force the ECB’s governing council to assemble for an emergency meeting in Frankfurt.

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Markets editor

Alex is an investment writer who has been contributing to MoneyWeek since 2015. He has been the magazine’s markets editor since 2019. 

Alex has a passion for demystifying the often arcane world of finance for a general readership. While financial media tends to focus compulsively on the latest trend, the best opportunities can lie forgotten elsewhere. 

He is especially interested in European equities – where his fluent French helps him to cover the continent’s largest bourse – and emerging markets, where his experience living in Beijing, and conversational Chinese, prove useful. 

Hailing from Leeds, he studied Philosophy, Politics and Economics at the University of Oxford. He also holds a Master of Public Health from the University of Manchester.