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Italians will have a say on reforms to its Senate, the upper house of parliament, in October. The proposed reforms are widespread, and if approved could improve the stability of Italy’s political set up and allow Prime Minister Matteo Renzi to push through laws aimed at improving the country’s economic competitiveness.
“If the referendum is rejected, we would expect the fall of Renzi’s government. Forming a stable government majority either before or after a new election could become extremely challenging even by Italian standards,” Deutsche Bank analysts led by Marco Stringa said in a note to clients in May. Fears that the reforms will be rejected have intensified since the eurosceptic vote won in Britain.
Online publication This is Money suggests that despite the assertions of Renzi that he is ready to provide assistance to bail out underperforming banks, Italy is actually around €35 billion short of having the required capital to do that. There are now serious fears in Brussels, according to the Financial Times, that the Italian government will not be able to fund a rescue package for the banking sector.
uk.businessinsider.com...
Germany and the European Commission told Italy on Wednesday to follow the rules after Italy made preliminary plans to prop up its banks in the wake of volatility caused by Britain's vote to leave the European Union.
Rome says it is concerned that Italian banks, which hold 360 billion euros (295.82 billion pound) of bad loans, a third of the euro zone's total, risk attack by hedge funds betting that market turmoil could tip them into full-blown crisis.
Banking and government sources said Italy was preparing to protect its banking industry by requesting more flexibility from the EU on both public spending and state aid for its lenders.
uk.reuters.com...
originally posted by: gortex
a reply to: SpongeBeard
The electorate can be fickle , David Cameron thought we'd vote to stay in the EU but as we know , he was wrong.
The 360 billion euros is the amount of bad debt Italian banks hold , a cause for concern no ?
originally posted by: stonerwilliam
originally posted by: gortex
a reply to: SpongeBeard
The electorate can be fickle , David Cameron thought we'd vote to stay in the EU but as we know , he was wrong.
The 360 billion euros is the amount of bad debt Italian banks hold , a cause for concern no ?
360 billion euros is small change to some of those banks around the world ,The Elephant In The Room: Deutsche Bank's $75 Trillion In Derivatives then we have JPMorgan of course, with a whopping $70.4 trillion in total
The E.U is a dead duck, but needs to keep the U.K in otherwise Germany will have to bailout on their own