FAST FIVE: Europe's Zombie Firms Are Multiplying Like Never Before

Published by on

Many large zombie firms have also been bailed out, in some cases more than once.

A Bank of America report from July posits that the UK accounts for a staggering one third of all zombie companies in Europe.

They represent 20% of all companies in the U.K, up four percentage points since March, according to a new paper by the conservative think tank Onward.

There are plenty of reasons why filling the economy with ever larger numbers of zombie firms is not a good idea.

Allowing zombie firms to proliferate in order to protect banks from the consequences of their bad lending practices and investors from the consequences of their bad investment choices doesn't just reward – and by extension, incentivize – bad actions and decisions; it stores up bigger problems for the future.

Categories: ZH