Answers to the questions in this article are provided online at www.hoddereducation.co.uk/economicreviewextras
In late June 2017, just as many of us were getting ready for the summer holidays, the Italian government’s use of taxpayers’ money to prevent the collapse of two regional banks — Banca Popolare di Vicenza and Veneto Banca — sent shockwaves around the European Union. While the strategy seems to have fixed a short-term problem, it may have inadvertently undermined the credibility of financial regulation in the eurozone and damaged the long-term prospects for the European banking sector.
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