09/02/2017 (Agence Europe) – The former Director General of the IMF and Governor of the Bank of France, Jacques de Larosière, believes that the problems related to the resolution of the Italian bank Monte dei Paschi di Siena are symptomatic of shortcomings in banking union in the Eurozone. “We have banking union, we are told, but in fact banking union does not work. The EU has told Italy that there is an article (in the 'BRRD' directive) that allows it to do preventative recapitalisation, gives responsibility to Italy, but Italy is not totally free because it must respect competition rules”, he told a hearing at the European Parliament (see other article). He went on to say that “banking union is very good for banks in good shape. But if you get into trouble, the chief hospital person says 'go to your local clinic and we'll check'”. (MB)