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Bundesbank fears heavy losses as Italy ups the ante

Jun 05, 2019 - The Daily Telegraph (London)
Company Splits/Spinoffs

THE German Bundesbank has warned that it could face heavy losses if a major country leaves the euro and defaults on its debts to the European Central Bank system, but warned that any attempt to prepare for such a crisis could backfire by triggering a speculative attack.

The analysis is highly sensitive coming just days after the insurgent Lega-Five Star government in Italy passed a decree authorising the creation of a parallel payments system known as "minibots", a scheme decried by critic...