Stress-test results demonstrate the improvements Italian banks have made in recent years. Capital positions are comfortable, asset quality is robust and profitability is resilient. Record first-half results point to another strong year.

The Austrian government's planned fiscal consolidation is unlikely to stabilise general government debt-to-GDP over the next five years without further measures to help offset rising structural spending pressures amid the weak outlook for economic growth.

The EU bank stress-test results align with our view that banks’ credit profiles are resilient and would help soften the impact of rising economic and other challenges on credit risk. But risk is skewed to the downside.

Scope Ratings has published the performance overview of notes issued by Marzio Finance, a EUR 10bn securitisation programme backed by ‘cessione del quinto’ and ‘delegazione di pagamento’ (CQS) loans originated by IBL Banca.

Higher US tariffs on imports from the EU represent an external headwind for Ireland’s export and corporate-tax dependent economy but the 15% tariff increase looks manageable without materially challenging the strong public finance outlook.

Scope Ratings requests comments on its Financial Institutions Rating Methodology by 4 September 2025. The proposed changes to the methodology are not expected to have an impact on outstanding ratings assigned by Scope.

EU banks’ reporting on fully phased-in standardised RWAs under CRR3 following Basel III finalisation shows significant variation in CET1 ratio impacts: from zero to 367bp. We expect banks will have time to adjust.

Scope Ratings calls for comments on its Sub-Sovereigns Rating Methodology by 1 September 2025. The proposed update refines Scope’s analytical approach. No rating changes are expected as a result of this update.

The Portuguese government’s payment of a pension bonus this year and multiyear corporate tax cuts will not reverse the declining public debt trajectory, but diminished fiscal leeway leaves less room for manoeuvre in case of future shocks.

Italian banks face relatively low asset-quality risks from new US tariffs, although second-round effects could impact profitability.