The European Commission has opened up the possibility of using the permanent European bailout fund (ESM) to help banks. “The crisis – states Brussels' recommendations to the member countries – has slowed down the process of financial integration” in the euro area. And “ambitious steps forward may be necessary”.
The news had a beneficial effect on the stock markets. Piazza Affari, which had lost almost 2% in the late morning, more than halved its losses. The banking sector is clearly improving, with Banco Popolare (+2,44%) and Unicredit (+1,63%) leading the Ftse Mib. Intesa Sanpaolo was also positive (+0,7%).
When fully operational, the ESM fund will have an endowment of 500 billion euros. Until now it was expected that this vehicle could only be used to support the finances of countries in difficulty.
