Sovereign and banking risks: what policies?

The debate on how to deal with the sovereign and banking risk loop is at the center of the policy and regulatory debate. There is a widespread awareness that excessive exposures of banks towards sovereigns and vice-versa may be a source of systemic risk, under-rated by the current regulation. At the same time it is not clear how far limiting these exposures may in fact enhance or rather jeopardize global stability, especially given the still very slow pace of the recovery. There is also a widespread debate on the best policy measures to tackle this issue. At this round table, organized for the launch of the IV issue of European Economy: Banks Regulation and the Real Sector will discuss the key ingredients of this debate and the main policy options. The programme of this event is still under construction. More information will follow soon.