The European Commission warned on Tuesday 8 January that a possible restructuring of Banca Carige would have to comply with European competition rules, after the Italian coalition government had adopted a decree the day before opening the way for possible public support.
"We take note of adoption of the decree. We are in contact with IT authorities and stand ready to discuss on the availability and conditions of tools always within the EU law framework", said Margaritis Schinas, spokesperson for the European Commission.
The Italian decree provides, in the event of a specific request from the institution, for the possibility of providing public guarantees for the issue of bank bonds and/or of carrying out preventive recapitalisation.
At the beginning of January, the European Central Bank, acting as the sole banking supervisor within the banking union in the eurozone, took control of the tenth Italian bank (see EUROPE 12165).
The leader of the Five-star Movement, Luigi Di Maio, welcomed the fact that the populist government is on the side of small savers. The Italian 2019 budget provides for a €1.5 billion fund for small private investors who have suffered losses in bank bailouts.
On the other hand, the former Prime Minister, Social Democrat Matteo Renzi, criticised the initiative of the parties now in power, which, when they were in opposition, had strongly criticised the public rescue of Venetian and Tuscan banks. (Original version in French by Mathieu Bion)