Among the various European countries, Italy is the one that has paid the highest price due to the new rules for the resolution of banks in crisis, the so-called bail in. This was stated by the director general of the Bank of Italy, Salvatore Rossi, speaking on Wednesday at the Almo Collegio Borromeo in Pavia.
In particular, according to Rossi, our country "ended up stuck in the new logic - no more bail outs, only bail ins - just when its banks were loading up on non-performing loans due to the depth of the double-dip recession, the effects of which for some are been aggravated by bad management, when not criminal".
The general manager of Bankitalia recalls that at the time the Central Bank had raised various objections regarding some improper regulations of the Banking Union.
But Italy, explains Rossi, “couldn't do it on a political level. The technical level was not that of the final decision. The political level saw Italy in a position of extraordinary weakness in Europe between the summer of 2012 and the end of 2013, due to internal convulsions”.
Annexes: Europe: from monetary union to economic union and beyond
