Weber: euro zone faces fresh debt crisis
Axel Weber, former head of the German Bundesbank and now chairman of UBS, said the European Central Bank’s stress test for banks in November “risks setting off a new sovereign debt scare, reviving the crisis in the Mediterranean countries”.
“Markets are currently disregarding risks, particularly in the periphery. I expect some banks not to pass the test despite political pressure. As that becomes clear, there will be a financial reaction in markets,” warned Weber.