Germany Italy curbs on banks. Renzi: “We respect the rules” – The Republic

MILAN – Before the well-informed source close to the government in Berlin, then the same Chancellor Angela Merkel: the idea that Italy ask for a window the exception to the application of the bail-in – that is, the involvement of investors and depositors in the institution’s rescue, before resorting to public funds – not like Germany. A position that calls for the immediate response of Prime Minister Matteo Renzi, who takes away the order of the European agenda the question of the revision of the rules because “even with the current ones we are able to protect savers.” And who then throws the jab: “We respect the rules, the Germans did not do so” in reference to the overruns of the Covenant of the 2003 Berlin stability, tolerated at European level “and by the Berlusconi government.” He could not miss then the reference to the 247 billion that Germany has put into the pot for its banks, while Italy “missed an opportunity” for
“intervene in a structural way” on the issue.

the German stop. However, the German Chancellery, is opposed to any attempt to protect investors if the Italian government goes ahead with the plan to recapitalize banks, emerged in these days of financial turmoil as a result of British vote on Brexit. To say it in Bloomberg were at first German government sources, according to which Berlin tip to apply the EU rules in the rescue of the banks, thus, imposing losses on shareholders and certain creditors before they are used public money.

But then came the confirmation harder, that of Angela Merkel, that a question on the subject responded without too many chinks: “We have defined certain common rules on bank resolution and on their recapitalization, we can not change everything every two years. ” After the meeting of 27 heads of State and Government of the EU he responded to reporters: “The current basis of recapitalization and resolution” banks “provide opportunities to meet the needs of member states”. As if to say that there is no need to go to create more space.

The Italian plan. In fact, as a result of stock market crashes of the two post-Brexit sessions overwhelmed especially the system of Italian credit, they are back in vogue plans of Rome to try to resolve once and for all the banks’ balance sheet problems, which primarily refer to the amount of loans they have in the belly. Yesterday the Premier Renzi had stressed that the government is “ready to do whatever it takes, if it will help to ensure the security of savers and” Mario Draghi and even citizens had taken note of the fact that you have to solve these problems permanently. By the EU, the Commission Vice-President Valdis Dombrovskis confirmed the ongoing dialogue with Rome on the theme, but today has curbed the member of the ECB directory, Benoit Coeuré , for which “if the rules on bail-in are held over, then it is truly the market union end as we know it. “

the proposed framework provides a window of six months to derogate from the rules on bail-in and be able to be secured the system with public money. The news circulated stated in a forty billion the value of possible action, which could result in practice in several ways. This should be the pivot of the intervention CDP, which could recapitalize banks directly giving the guarantee to underwrite the unexercised capital increases from the market. Another way could instead operate directly on the problem of suffering, by activating a kind of new fund that will invest in Atlas tranche of loans past due less guaranteed to buy them at cost price and take them out from the banks that they should not write in books heavy writedowns.

the location of Renzi. “We have a great ability to adhere to the rules and we will continue to do so.” So the prime minister has blunted criticism during the post EU summit press conference, after Merkel stressed the importance of respecting the rules on bank bailout. “The banking issue is not on the agenda and does not see requests for rules changes. In the current situation if there were problems we would be in ‘as things stand’ conditions to protect the money of depositors and citizens. There is no risk for the money of the taxpayer and citizen. point. There are tools to achieve this goal by the rules. the rest are discussions among the experts. We – he added – we want to change the political rules of the game in ue, not banking regulations, we want to talk about child care, culture and innovation, and not only of bureaucrats and financiers. “

Topics:

Italian banks

banks

bail-in

Starring:

Angela Merkel