There is no problem for sovereigns to finance themselves, and no immediate concerns including for Italy which keeps tapping markets at sustainable cost, says Ignazio Angeloni, former member of the ECB Supervisory Board. In his view, debt sustainability problems may arise though in the second phase of the crisis, which could begin mid-2021 or so. There is also a fundamental issue with bank profitability and bank viability in Europe which predates the crisis and will have to be addressed. Ignanzio Angeloni is one of the continent's foremost banking and supervisory experts, having been at the ECB in various positions as well as at the Italian Ministry of Economy and Finance as its Director of International Financial Relations. He is currently a Senior Fellow at the Harvard Kennedy School.
Ignazio Angeloni spoke to Beat Siegenthaler of the UBS Knowledge Network from Frankfurt on 5 May 2020.