Tough time

01 October 2008

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Over the last month, the media have been aghast at the pace of bank collapses. Foul winds have blown in from the US and reached Europe, hitting the largest countries spectacularly. This time the crisis collided with Benelux head-on as failed insurer and banker Fortis was nationalised by the region's three governments, while Belgium and France rescued Dexia Bank. Last year, investor confidence remained strong in Benelux and they perceived that the region was immune from the global crisis

This time, things are different. If Fortis or Dexia made the headlines, more could follow. Many once strong local banks which support the private equity industry in the region are suffering. Investor confidence has been eroded by current global affairs and players have stopped making predictions, preferring instead to scrutinise the markets.

After a rather dynamic summer in the region, September was gloomy and October may be greyer still, with headlines at the beginning of the month even predicting the end of the European Economic and Monetary Union. One can only hope that the raft of announcements point to the market having hit bottom and that the road ahead will eventually look rosier. At the very least, EU governments have recently proven ready to avoid abrupt collapses and so should allow Europe to regain the confidence it needs to get over the crisis.

Yours sincerely,

Domitille Lainey

Editor, Benelux unquote"

Tel: +44 20 7004 7475

domitille.lainey@incisivemedia.com.