Friday, April 22, 2016

Renzi: no roof on government bonds the banks. Promises to battle Ecofin – Il Sole 24 Ore

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This article was published April 22, 2016 at 07:26 hours.
the last change is the April 22, 2016 at 11:34 hours.

NEW YORK – from the UN Matteo Renzi last night launched an attack on the Dutch proposal breast Ecofin to impose a ceiling on how much government bonds may hold the banks: “there is no chance that one accepts a path on government bonds without an overall strategy – said Renzi – the Italian position on this will be very clear but the last thing to do is open controversy and debate within the eurozone. ” The Dutch proposal for the risk on bonds held by banks and the imposition of a ceiling on the Ecofin table. But Renzi, who instead praised the effective action of chairman of the board of the European Central Bank Mario Draghi, “the priority is now the direction of European economic policy for growth and investment.”

So announce two vertices theses those of today and tomorrow in Amsterdam between the finance ministers of the euro (Eurogroup) and the EU to 28 (Ecofin). This morning, the German Finance Minister, Wolfgan Schaeuble, arriving in Amsterdam has openly declared “in favor” of the reduction of banking risks to break definitively “the link between the balance sheets of financial institutions and state budgets.” Reporters said that “we must begin to do so.” Hence the support for the proposals of the Dutch presidency of Ecofin which opened the debate on a number of options to reduce the exposure of banks to sovereign risk. Which may include the possibility of a roof to the purchase of public securities.

The Eurogroup President Jeroen Dijsselbloem reaffirmed that the completion of the union bank “is crucial” for stability in the euro area. Action must focus on ‘common system of bank deposit insurance, serve progress on the evaluation of sovereign risks, the weight that must have the exposure to sovereign debt in the banking companies’ financial statements, “he added.

Renzi is in New York for examining numerous dossiers in the context of the United Nations, first of all to seek a majority that allows to move to Italy in the first round in the voting for the rotating seats for the 2017/18 biennium in the security Council of ‘UN. Renzi will sign in a few hours the so-called Cop21, the historic agreement for the environment agreed in Paris last December and spoke yesterday before the General Assembly addressing the issue of sustainable development launched the United Nations by 2030.

Last night the Prime Minister attended a dinner hosted by former New York City Mayor Michael Bloomberg at the Whitney Museum in honor of the UN Secretary general Ban Ki Moon and several heads of state and government present at this special session of the United Nations.

speaking of Europe yesterday evening, Renzi added that “Italy is concerned with a lot of strength of the immigration issues, cultural, infrastructural. It is good that all together we know that it is time to make prevail the interest of Europe and Europeans than the small interests of individual states. “



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