“I do not think there is a real risk of contagion for the moment in Europe,” he reinforced.
According to Gentiloni, the European Union (EU) is monitoring the situation “in close contact” with the European Central Bank (ECB).
The official added that the European institutions “recognize and take note of the initiatives taken by the US authorities to avoid contagion.”
Authorities in the United States were trying Monday to assuage fears about the health of the banking system, after the bankruptcy of SVB bank forced measures to protect deposits.
In Europe, German financial regulator Bafin said Monday that the collapse of the SVB did not pose a financial threat to Germany’s mighty economy. However, it ordered the freezing of the activities of the German branch with SVB, based in Frankfurt.
France dismisses alert
In turn, the French Minister of the Economy, Bruno Le Maire, ruled out the risk of contagion for the French economy and added that “there is no type of alert”
Given this picture, the New York Stock Exchange opened its operations this Monday with a clear downward trend, given the specter of contagion due to the situation. Meanwhile, oil prices fell in their first operations on Monday.
