“Italy will bring thousands of kilometres of roads back under state control after the powerful Benetton family agreed to give up its stake in Atlantia’s motorway unit to avoid the threatened cancellation of its lucrative operating concession.” – by Francesca Landini and Giuseppe Fonte
Best Reads
Summer 2020 Economic Forecast: An even deeper recession with wider divergences (European Commission)
“The Summer 2020 Economic Forecast projects that the euro area economy will contract by 8.7% in 2020 and grow by 6.1% in 2021. The EU economy is forecast to contract by 8.3% in 2020 and grow by 5.8% in 2021. The contraction in 2020 is, therefore, projected to be significantly greater than the 7.7% projected for […]
EY Germany will survive, but legal troubles loom (FT)
“The auditors missed that €1.9bn in cash was probably never there. That’s a mistake that would send most companies or professionals into the dustbin. But the largest global audit firms are special.” – by Francine McKenna
Nord Stream 2 Could Sever Transatlantic Ties (Bloomberg)
“The gas pipeline is now a game of chicken between Germany and the U.S., in which both players appear reckless.” – by Andreas Kluth
Olympic Casino’s asset grab unnerves European junk bond investors (Reuters)
” A sleight of hand by the owner of an Estonian gaming company is alarming investors worried that tactics used by private equity firms in the United States to shift assets away from creditors are coming to Europe.” – by Yoruk Bahceli
Italy bank showdown looms in test for European consolidation (Reuters)
“As many bankers fled Italy’s financial capital for second homes in the mountains or lakes at the start of a coronavirus lockdown in March, Victor Massiah rushed instead to rent a house within walking distance of UBI Banca’s Milan offices.” – by Andrea Mandala, Valentina Za and Pamela Barbaglia
ECB redoubles campaign for banking mergers (The Irish Times)
“The European Central Bank (ECB) has redoubled its efforts to encourage mergers and acquisitions in the euro zone banking sector by seeking to tackle market myths and launching a public consultation on its approach to consolidation.” – by Joe Brennan ECB Public Consultation Announcement here.
Ireland’s Martin to Lead Historic Government Coalition (VoA)
” Centrist politician Micheál Martin became Ireland’s new prime minister Saturday, fusing two longtime rival parties into a coalition four months after an election that upended the status quo.” – by Associated Press
Germany Weighs Measures Against U.S. Over Nord Stream Threat (Bloomberg)
“Germany is preparing to strike back against the U.S. if President Donald Trump follows through on his threat to kill off the Nord Stream 2 gas pipeline with additional sanctions.” – by Patrick Donahue and Brian Parkin