Fears struggling Italy banks could spark financial crisis as Brussels REFUSES to help
EU bosses have told Rome to stop asking for a £3.4billion payout to save Italy’s struggling banks.
By KATIE MANSFIELD
Express.co.uk
Mon, Jul 11, 2016
Finance chiefs in Brussels and Germany have said Italy’s troubled banks do not represent an acute crisis and lenders should stop asking for public money to solve their problems.
Italy’s lenders have been struggling for months to unload £300bn of non-performing loans – about one third of the eurozone total.
Prime Minister Matteo Renzi is said to want government help to save the situation, which would have to be signed off by the EU.
But Germany has said Italy will have to sort out the crisis itself and not rely on the EU.
Bavaria’s finance minister Markus Söder: “Italy mustn’t become the origin of a new banking crisis.
“That’s why the regulations of the banking union must be followed by the Renzi government. It cannot be a repeat of the Euro-stabllisation package, with the rules being broken when it mattered the most.
“The keynote of the banking union is: Owners and creditors are liable for ailing banks, not the taxpayers.
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