Wednesday, July 06, 2016

Merkel-Renzi Showdown: 
Italy Threatens to Defy Merkel, 
Brussels Over Bank Bailouts
Mish Shedlock* points out how Brussels (Europe) has refulsed Italian Prime Minister Matteo Renzi's request for a state sponsored bailout of Italian banks because it is "against the rules" .. Renzi is determined to intervene with public funds if necessary despite warnings from Brussels & Berlin over the need to respect rules that make creditors rather than the government fund bank rescues, according to several officials & bankers familiar with their plans .. Shedlock: "Last week German chancellor Angela Merkel refused Renzi’s plans to bail out Italian banks for the fourth time. Merkel chastised Renzi, 'We wrote the rules for the credit system, we cannot change them every two years.' .. Italian banks are insolvent .. There’s massive infighting over nearly everything now .. Renzi is now prepared to defy Merkel. And Beppe Grillo, Italy’s Eurosceptic Five Star Movement leader stands on deck, ready to replace Renzi if depositors are bailed in. OK chancellor, what the hell are you going to do if Renzi goes ahead? The likely answer is 'breathe a sigh of relief' no matter how she publicly expresses herself."
link here to the commentary

No comments: