The spectre of deflation and quantitative easing in the eurozone is making the worst-case scenario from Eiopa’s stress tests last year look worryingly possible. The results of the Eiopa exercise must be treated carefully, given that many participants did not apply long-term guarantee measures in their submissions. But, even so, the data points to the industry’s vulnerability to prolonged low rates combined with plunging asset values.
This is not a revelation in the parts of Europe where firms
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