“The savers will be safeguarded by the Italian Government, the contacts with the European authorities continue positively as it has always been in this
period. But the theme of Italian banks is not on the agenda of the work “of today and tomorrow in Brussels. This was stated by Economy Minister Pier Carlo Padoan arriving at Council headquarters in Brussels for the Eurogroup meeting, in response to those who asked to what extent they had contacts with the Commission, about the precautionary recapitalization of solvent banks by the state. From Mps. A reassurance to investors that, in line with that already given a few days ago by the Prime Minister.
Banks, Eurogroup deciding on recapitalization and bail-in
From Warsaw, the Italian Prime Minister Matteo Renzi in recent days said he was optimistic about the ongoing discussions for weeks now. “The aim is to avoid problems Italians and account holders – the premier said at a press conference -. There is full support of the other European partners, I also spoke with Jean-Claude Juncker, “President of the European Commission, who was also present at the Atlantic Alliance summit in the Polish capital. Renzi also said that “there is an Italian problem, is there any single situation open for a thousand reasons.”
Banks now ready to give 51 billion Npl
Padoan: we will see other precautionary tools
Padoan stated today not to be aware of the plan from 150 billion evoked by Deutsche Bank to allow and facilitate the recapitalization of European institutions in difficulty, but not exclusively Italian. It explained that “there is already a tool for liquidity, we will see more and more precautionary instruments”.
“Banks not Eurogroup and Ecofin agenda”
the Economy Minister also explained that “the Italian government is working to set up, and some already have done so, precautionary tools, as the word suggests, will only be used if necessary.” But also it pointed out that the theme of Italian banks is not on the agenda of the work of today and tomorrow. The minister said he was “very surprised” by the titles appeared today in Italian newspapers. “The Italian and European banks – said in Brussels – are not on the agenda of the Eurogroup and Ecofin.”
Towards the ok of precautionary recapitalisations and suspension of the bail-in
The issues on the table
The fact that the two days of talks It will still be an opportunity for the Italian government and the European Commission to touch the position of partner and evaluate live the negotiating margins of each in banking. There is a set of tools, some already acquired and partly to work, others under discussion, which make up a mosaic to accompany all the steps needed to get out from the corner without causing permanent damage to the market. On the first front, the “market solutions” mentioned on several occasions by the government are all already in the field, and do not require further authorization by the European Union.
“The Italian government is working to set up, and some already have done so, precautionary tools, such as the word says, they will only be used if needed “
Pier Carlo Padoan, Minister of Economy
the schema replication Atlas with new assets started, and involves a articulated audience of subjects in the case of Cassa Depositi e prestiti approach to the state, but do not enter the public perimeter. A form of state guarantee on the loans, the “Gacs”, has already been written in the Law Decree 18/2016, he met with no objections in Brussels. It is the other intervention, the capital, to even look for the official go-ahead from Brussels, where he was held back by German and Dutch objections rather than the Committee. The operation should be associated with the contribution of shareholders and bondholders. But the Italian government would like to tear a suspension of the latter principle in a sensitive context, marked by risks to financial stability and a future vote on Senate reform uncertain outcome.
French Finance Minister: solidarity with Italian commitment of banks
Sapin: solidarity with Italian commitment of banks
However, if the goal Padoan in Brussels was to build consensus and support for the Italian plan for the safety of banks that suffer most for market instability and the weight of the NPL, bank loans, some results are already seeing, judging by conciliatory words of French Finance Minister Michel Sapin. Sapin, in fact, stressing that it is not favorable “to a softening of the European rules’ in later Brexit, he said at a briefing:” I am for the intelligence in the application of these rules. I challenge anyone to be for stupidity. ” And he added: “Today is a concern for the Italian government to take the necessary measures to restore confidence throughout the Italian banking system. I believe it is our duty to show solidarity. ”
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