EU supports rescue Monte Paschi
- The rescue of the Italian problem bank gets support from Brussels.
That says Bloomberg Tuesday afternoon.
In early June, the Italian government signed a deal with the European Commission on the rescue of Monte dei Paschi di Siena (MPS). It was a principle agreement.
The fact that a bank receives a rescue buck by taxpayers, critics see the ax at the root of the only one and a half year active European Resolution Mechanism.
After banks had to be rescued with state aid during the credit crunch, EU member states switched to a banking union. Banks would take less risk because they had to solve a capital deficit themselves.
The rescue of Monte dei Paschi di Siena (MPS) is mainly seen outside Italy as evidence that the only hard-to-recapitalization of solvable banks is tax-softening.
Eurocommissioner Vestager (Competition) announced in early June that MPS may be rescued under conditions with tax money.
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