Italy bank bailout anger as EU has ‘one rule for Rome and another for others’
ITALY will be allowed to break official European Union rules and stump-up billion of pounds worth of taxpayer cash for crumbling lenders to prevent a full-scale banking crisis.
By LANA CLEMENTS
Express.co.uk
Mon, Jun 26, 2017
In a deal that will cost the state about £14billion (€17bn), the good assets of failed lenders Popolare di Vicensa and Vento Banca will be taken over by the country’s biggest retail bank Intesa Sanpaolo.
Rules introduced by the EU last year forbid taxpayer money being used to rescue lenders without investors also taking a hit.
But investors are to be protected under the deal pulled together by Rome and approved by the European Commission.
The leniency given to Italy is likely to anger fellow member states, especially Spain.
Last month Santander bought toxic lender Banco Popular for a nominal €1 – but not before shareholders lost everything.
It is thought Italy has been allowed to bend the rules because many savers are retail investors in the country’s banks.
Inflicting heavy losses on ordinary Italians would be political suicide, at a time when there is already a worrying backlash against Brussels.
The EU is no doubt keen to avoid angering Italians after a recent poll showed about 30 per cent of the country would vote for the anti-euro 5-Star movement.
It comes after Rome has already been allowed to step in to rescue its oldest lender Monte die Paschi.
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