Tensions rise between Italy and Europe over bank bailouts. The Renzi government explained that, on the occasion of the recent rescue of the four banks in crisis (Popolare dell'Etruria, Banca Marche, Cariferrara and Carichieti), it wanted to protect all savers by using the resources of the Interbank Deposit Protection Fund which is entirely private, being fed by banks. But the European Commission prevented the operation arguing that it would involve state aid.
For this reason, before the bail-in came into force, the Government had to resort to the Resolution Fund, fed by Intesa, Unicredit and Ubi, and protecting account holders and non-subordinated bondholders but not the shareholders and holders of subordinated bonds of the 4 banks in crisis.
Having seen the unmasking of the European Commission, it grabbed the straws artfully arguing that the final decisions were all made by the Italian government because its were only legal indications. Which, if disregarded, however, would have triggered the European integration procedure against Italy with all that follows.
