Corporate insolvencies: the true nature of the Eurozone crisis

The decline in global corporate insolvencies in 2010-2011 proved to be short-lived. Insolvencies confirmed their rebound in

2012 (+1%), the result of twomajor and contrasting trends:while they fellmore than expected in the Americas (-15%) and

Asia (-5%), therewas a sharper-than-expected rise in Europe,with bankruptcies up in each of the threemajor sectors (+3% in

industry,+9% in construction and+7% in services). Thiswas especially the case in the eurozone (+16% despite the German

exception). The upturn in insolvencies is likely to gather pace in 2013 (+8%), in linewith the downward revision in our

macroeconomic scenario, in particular for Europe, andwill probably continue through 2014 (initial forecast of +2%).