Banks
The Minister of Finance of the struggle for Italy’s banks
The Italian money houses are stuck in a deep crisis. The breeds greed. However, at the Meeting of the Euro-Finance Ministers of the Euro group chief excludes new rescue programs categorically.
It is the first meeting since the Brexit-decision: In Brussels, the Eurozone Finance Ministers discuss the future of the community. So, today’s discussions were dominated by the consequences of a possible exit of Britain from the European Union. “It is an unpleasant Situation, nobody knows how to do it now,” said the Austrian Minister, Hans Jörg Schelling. It was clear, however, that it will give economic impact.
During the withdrawal of Britain may drag on for a long time, is the position of the Italian banks are much more concrete: you are sitting on a huge mountain of bad loans. The amount of the loan, which may be never paid back, is estimated at 360 billion euros.
Euro group chief Jeroen Dijsselbloem, a new multi-billion-Euro rescue program from the taxpayers rejected yet. “There is no acute crisis,” said the Dutchman in Brussels. He also pointed out that the banks have to settle their problems themselves.
Dijsselbloem is in response to a request from the chief economist of Deutsche Bank, David Folkerts-Landau. Had proposed to put 150 billion euros to the recapitalisation of the European banks. The simplicity with which some bankers called for more public money to solve their problems, is a problem, commented the head of the Euro group. “This must end.”
The oldest Bank in the world, the Institute of Banca Monte dei Paschi di Siena, has doubtful credit claims of 46.9 billion euros in the books
The savers protect
Financial experts estimate the immediate needs of the banks at 40 billion euros. This is also the sum that will put the Italian Prime Minister, Matteo Renzi from state sources in the banks. Renzi’s Argument: The Brexit vote, the British have created an exceptional situation, in which such AIDS are allowed. Such an exception should not be actually.
Since 2015, EU aims to ensure policy that banks will not be rescued easily with the taxpayers ‘ money, as happened after the 2008 financial crisis, often. Before the state would assume responsibility, be liable to owners and creditors. But just because the hook is because many small investors would be affected in the case of Italy. For example, Italy’s Finance Minister Pier Carlo Padoan said ahead of the Meeting of the Euro group, the aim must be to “protect savers”.
Creative Solutions
According to the daily newspaper “Handelsblatt” could there be in the end a compromise, by a is used in an exception rule of the European banking Directive. Therefore, could be dispensed with for a financial contribution of shareholders and customers, if, as a result, small businesses, and private citizens to be made or a risk of Infection for the economy of the country and the banks of other countries.
The German Finance Minister, Wolfgang Schäuble, seems to be for creative solutions to be open. There is in the EU rules of “any quantity” of possibilities, in order to protect small savers, he said. It should not repeat but, “the bankers make the big profits and the taxpayer will end up paying the risk”.
Quick decisions Schäuble is not expected. First of all, the new “stress tests should be available” to Europe’s banks, which are expected in July.
Penalties for Spain and Portugal?
On Tuesday, the Euro will deal with the Minister of Finance primarily with the deficit countries of Spain and Portugal. The EU Commission had noted that in the past year, the budget targets not achieved and any appropriate countermeasures taken have either been. According to the Federal Minister of Finance Schäuble penalties against the two countries closer. Boredom will not arise in Brussels.
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