Italy’s €17bn bank crisis is the fruit of unworkable EU policies

Italy’s long-simmering banking crisis has erupted again. The emergency plan to wind down two Venetian lenders at a cost of up to €17bn is a fiasco of the first order.

While the Italians have let the crisis fester, the underlying cause is the unworkable policy regime imposed by the EU authorities themselves.

Had Brussels and Frankfurt let Italy nationalise Veneto Banca and Banca Popolare di Vicenza on flexible terms two years ago, the crisis could have been contained with less damage to the Italian economy and at far lower cost to the state.


READ ---  What’s the deal with Google and HTC?