Yesterday evening the Council of Ministers approved a provision, called "Salva-risparmi" with which it asks Parliament for authorization to raise the state's debt by 20 billion euros to save the savings of Italians in banks in difficulty, starting from Monte dei Paschi, the Veneto banks, Carige and other institutions. As stated by Prime Minister Paolo Gentiloni, this is a precautionary and preparatory provision for the decree that will be issued to avoid the bankruptcy of Monte dei Paschi in the event that the capital increase in progress does not have a satisfactory outcome on the market.
Gentiloni specified that the 20 billion intervention is not said to be indispensable but the Government does not want to be found unprepared for any eventuality and he hoped that the responsibility would be shared by all the political forces in Parliament.
"The impact on the public debt - clarified the Minister of Economy, Pier Carlo Padoan - will be temporary and therefore has no impact on the structural adjustment" (public deficit): the 20 billion will be used "as a guarantee of liquidity and for any increases of capital in compliance with European regulations” which, in exceptional cases, provide for the intervention of the State in the banks.
Today we will see what Berlin and Brussels will say, but above all the markets that have been waiting for public support for banks and savers for some time.
