La European Commission not only supports, but recommends Italy to adopt measures that favor "a reduction in non-performing bank loans”. This is a significant position, since the main intervention on the table to reduce bank bad debts is the creation of a public bad banks, a project that has been under study for months and on which Rome awaits the green light from Brussels, since the intervention could constitute illegitimate state aid.
In the recommendations to the country contained in the six-monthly report on macroeconomic imbalances, the EU asks to introduce by the end of 2015 "measures to address persistent weaknesses in bank governance, in particular on the role of Foundations”.
On the public accounts front, the Commission underlines “Italy presents excessive macroeconomic imbalances which require decisive political action and specific monitoring. The persistence of sluggish growth and low productivity has significantly increased the risks deriving from the very high level of public debt and from low cost and non-cost competitiveness”.
Furthermore, according to Brussels, "it is of particular importance to intervene to reduce the risk of negative repercussions on the Italian economy and, given its size, on the economic and monetary union". In any case, the European Commission has once again avoided soliciting an infringement procedure against our country.
