The European Central Bank has warned of a growing risk to financial stability in the euro zone.
The ECB fears some members will be unable to sustain their debt with the potential to increase pressure on the euro zone’s weaker economies.
In yet another gloomy forecast the bank says the new politics, including Brexit and the Trump administration, provides the climate that could lead to turbulence and volatility.
The possible political upheaval facing a number of advanced economies in the coming year may fuel market shifts leading to financial contagion.
The euro zone remains a low growth environment and as such is vulnerable to market jitters.