Eurogroup first post-Brexit, Italy-Germany challenge on banks – TGCOM

To MPS Pier Carlo Padoan will try to extract concessions on bail and in recapitalization, allowing Berlin.

The date of 29 July, on the calendar of Ministers Economy of the Old Continent, is circled in red. L ‘ Eba that day will disseminate the results of the stress tests and these closely concern even five Italian banks. Mps, of course, and even Unicredit, Intesa, Banco Popular and Ubi .

Bail In recapitalization – The new Community rules are clear. Because public capital may be involved in the rescue of an institution it must first have been initiated “internal rescue”, also feasible through the forced removal from the accounts of more than 100 thousand euro. Very dangerous for those who have taken a risk by investing in equity and debt securities. And ‘the famous, infamous for someone, in bail. In short, Brussels allows precautionary recapitalization by the state of the banks, as long as solvent and if this is the contribution of shareholders and bondholders. However, there is a card to play to avoid disappointments for savers : the measurement can be suspended and extended protection to all investors if it is at risk the financial stability. And on this aspect points the Italian government.

The Berlin perplexity – There is, however, to convince Berlin and its unyielding Finance Minister, Wolfgang Schäuble. The next year, in Germany, we vote. And present themselves to voters after having endorsed an exception to the principles established by the EU on banks may prove a false decisive step. However, if problems emerge from the stress tests for other major European banking institutions, the demands of Rome may be accepted more easily.

The case of Deutsche Bank – But, paradoxically, Berlin it could become the most valuable ally of Italy. Schäuble’s position, in fact, is not shared on the top floors of the giant whose future is very uncertain by the name of Deutsche Bank. The chief economist at the German Institute, in an interview with Die Welt, has come to ask asks a gigantic rescue and recapitalization program with public money and in derogation to European standards. A public fund, in other words, 150 billion euro. And Db is not the only German bank loans: also concerned about the Bremer Landesbank.

Tuesday Ecofin – Negotiations and discussions did not appear can be resolved any time soon despite the government Italian want to close the matter before the results of the stress tests. And it can bet that the argument will end on Tuesday, also on the table Ecofin, when next the 19 eurozone finance ministers will sit also their colleagues of the non-euro European Union.

Padoan: “Savers will be protected” – Just before the summit, Economy Minister Pier Carlo Padoan wanted to reassure customers of Italian banks: “the savers will safeguarded by the government. the contacts with the European authorities continue positively. “

Dijsselbloem:” crisis of Italian banks is not acute “ – the crisis of Italian banks” is not acute and this gives us time to find a solution. ” This was stated by Eurogroup President Jeroen Dijsselbloem, stating that “a solution is always possible” as long as you comply with the regulatory framework. “The only important thing – added entering the Euro – is that we respect what we decided together, we do not need to question other things.”

For further Dijsselbloem Spain and Portugal must take further steps to reduce its public deficit. But rather to a possible government bailout for Deutsche Bank, the Eurogroup president was unequivocal: “Work out alone.”

Schaeuble: “No to speculation about the Italian situation” – on the Italian banks “we should not speculate before we have the results” of the European stress tests that will arrive at the end of July. He said the German Finance Minister, Wolfgang Schaeuble. “We know what the rules are to handle the difficulties of banks and this is the most important thing,” he added.

Dombrovskis: different solutions for Italian – “We are working in close contact and constructively with the Italian authorities, there are several ways in which this case can be dealt with if they were to emerge liquidity problems or equity, in compliance with European rules and without damaging the financial stability or non-institutional investors “: said the Vice President of the EU Commission Valdis Dombrovskis.