Key issue in Europe is sovereign debt: Deutsche Bank

The real issue in Europe is all about sovereign debt and it starts with Greece, says Anshu Jain, CEO of corporate investment bank, Deutsche Bank. “I have to say that away from Greece, we have a pretty encouraging situation,” he adds.

According to him, the governments in Italy, Spain, Portugal, and Ireland have made tremendous progress towards significant reforms. “The real issue right now is exactly what the resolution to Greece would be. If we could get through that, and it's a big if, I actually think that there is reason to long-term optimistic about Europe,” he asserts. He wouldn't say that anyone's close to talking about runs on banks. “I think it's very important that when you are talking about Europe, you need to take a broader view and all that's happened in last six months.  If I were talking to you six months ago, we didn't have LTRO, the size of the European Stability Mechanism (ESM) was much smaller than it is now. So, Europe's made some tremendous progress,” he elaborates. Undoubtedly, Jain says, the situation in Greece is creating worry. “It is legitimately a source of concern. But I wouldn't nearly talk about runs on banks,” he adds. Also read: Greece exit is nightmare, US data posts 'no QE' sign, says ING