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Zingales, Luigi
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3 articles of this author have been cited in the European Press Review so far.
Monti is Italy's insolvency administrator
The task of the designated prime minister Mario Monti is basically that of an insolvency administrator, the business paper Il Sole 24 Ore concludes: "A poorly managed company files for bankruptcy or is bought up by a healthy company. For states like Italy a 'hostile takeover' is fortunately unimaginable today. ... So the only option is bankruptcy. When a company goes bust a court appoints an administrator, not a manager. His task is not to draw up development plans but to reorganise the company either to put it in someone else's hands or to sell it. ... It is a temporary administration mandate, not a political one, and the only objective is to solve the problems that politics was incapable of solving."
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More from the press review on the subject » Domestic Policy, » Italy
Europe should not help Athens
Greece should pay its debts on its own if Europe's unity is to be saved, writes the business paper Il Sole 24 Ore: "The dream of the euro has been shattered and attention is now focusing on a question that was raised on its introduction: is the euro a political union or just a 'currency board' [for imposing a fixed exchange rate]? ... Greece can leave the monetary union. ... If the recent financial crisis has taught us anything, it's that the implicit promises [of bailouts] made by governments are dangerous. They sow the seeds for future crises. ... If we want to save the idea of Europe we must dispense with these implicit assurances and instead strengthen the sense of responsibility of individual nation states by beginning to make the Greeks pay for their own mistakes."
» more information (external link, Italian)
More from the press review on the subject » EU Policy, » Fiscal Policy, » Greece, » Europe
The "Bad Bank" is no solution
The Italian business paper Il Sole 24 Ore describes the "Bad Bank" concept under consideration in the US - which would involve troubled loans being passed on from banks to a special credit institute - as a useless measure. "The bankers are once again knocking on the politicians' doors. … The only solution appears to be the 'Bad bank' which means nothing other than passing the buck on to taxpayers. … Why is a US government that was supposed to bring radical change repeating the same mistakes made by the old Bush school? Why has the government changed, but not the clout of the lobby? Because some of their representatives are still in key political posts. … The bankers want the taxpayers to compensate them for the mistakes of the past. As a justification for this they point out that there is no alternative. … If the principle of responsibility is annulled, the market economy will lose its raison d'être."
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More from the press review on the subject » Financial Markets, » U.S., » Global
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