InvestEU, NetZero and the growing debts of EU citizens

As presented at the IES-IREF Summer University in Aix 20-22 July 2023

Published on 27th July 2023

I made a presentation at the IES-IREF Summer University in Aix-en-Provence about an aspect of my book, ‘The shadow liabilities of EU Member States, and the threat they pose to global financial stability’.

The relevant aspect is the build-up of off-balance […]

The European Stability Mechanism hangs by a thread – on France’s credit rating

The ESM and its image

Published on 26th July 2023

As previously published on IREF Europe:


The European Stability Mechanism (ESM) backstops the euro. Its nominal size is €705 billion but its lending capacity is lower at €500 billion, and the main condition attached to that is that the member states guarantees of the ESM’s solvency […]

Eurozone’s ‘shadow debts’ start to become real ones, and threaten the Bundesbank with bankruptcy

Published by The Bruges Group on 29 June 2023

Published on 7th July 2023

The German Federal Audit Office (‘Bundesrechnungshof’) has warned that the Bundesbank may need a bailout due to losses on the EUR650 billion of bonds it bought as part of the Eurozone’s equivalent of Quantitative Easing. The Daily Telegraph reported on this on 26 […]

Leaving the EU meant dodging not just one bullet – but an annual volley

Published by Brexitwatch on 23rd June 2023

Published on 26th June 2023

We are well off out of the EU’s dysfunctional system, but much remains to be done to extinguish its vestiges in the UK.

You can download the pdf version of this article here.

Thanks to Brexit the UK has managed to dodge a bullet: the risk of […]

‘Plain Sailing for the ECB? Look out for the rocks!’

Published on 25th June 2023

I am delighted to feature here the recent paper by Barney Reynolds, ‘Plain Sailing for the ECB? Look out for the rocks!’, Politeia, 2023 –

You can download it here.

Barney was co-author with myself and Professor David Blake of Managing Euro Risk: Saving Investors from Systemic Risk (Politeia, 2020, ISBN 978-1-9163575-1-8).

His […]

Totality of on- and off-balance sheet liabilities of the EU public sector is cloaked in obscurity

Total EU public sector debt is shrouded in mystery

Published on 29th May 2023

The totality of the public sector liabilities of EU and Eurozone member states is clouded in obscurity.  The key measure tracked by Eurostat – ‘General government gross debt’ – is circumvented to such an extent that, based on year-end 2021 figures, debts of […]

The archipelago of EU public sector entities with borrowing powers has created a behemoth of liabilities

EU public sector entities harbour a debt mountain

Published on 26th May 2023

The EU member states contain numerous public sector entities with borrowing powers, and whose debts fall outside the definition of member state debt as reported by Eurostat. The responsibility for the debts tracks back, one way or another, to the member state but the […]

Sir John Redwood comments for The Bruges Group

Published on 24th May 2023

Sir John Redwood in conversation about the issues of EU and Eurozone debts as raised in my book ‘The shadow liabilities of EU Member States, and the threat they pose to global financial stability’.

Sir John Redwood on the debts of EU and Eurozone

The EU banking system has massively exaggerated the amount of its cushion against losses

EU banking system has a tiny loss cushion

Published on 24th May 2023

EU authorities have permitted commercial banks to implement a particularly aggressive form of risk-evaluation methodology, the result of which is the ability to claim a thick loss-absorption cushion and to attest that the EU banking system is stable and resilient. It isn’t: cushions are […]

The Eurosystem has become a commercial bank, except one without a credit assessment department or loss-absorption cushion

The Eurosystem is a commercial bank with no capital

Published on 22nd May 2023

The Eurosystem has expanded its operations well beyond what a central bank would have traditionally undertaken. It now owns assets that are not ‘central bank money’ definitionally. Assets have credit ratings as low as BB in the Standard and Poor’s system, which means […]