Trump And Draghi May Bring A Return Of The "European Solvency Crisis": Barclays
![Trump And Draghi May Bring A Return Of The "European Solvency Crisis": Barclays Trump And Draghi May Bring A Return Of The "European Solvency Crisis": Barclays](https://5ux.com/sites/5ux.com/files/styles/medium_250/public/resize/remote/bd6cd1823840c095439083b336bc935e-500x229.jpg?itok=_MxL00fL)
Since Drahi's infamous "whatever it takes" warning in the summer of 2012, European bond yields have been a one way street lower, and until the recent Trumpflation rally, had tumbled to all time lows, in many cases well below 0%. There are two catalysts, however, that may be ending Europe's QE-driven free ride, and according to a recent report by Barclays, their names are Donald Trump and Mario Draghi.
First, when looking at the impact of Trump, Barclays notes that his election as US president may have created an additional burden on European budgets: defence spending.