European Union authorities are making contingency plans for the possible winding down of Banca Monte dei Paschi if the Italian lender has a poor reading in stress tests this week and no private or public support is available, an EU official said.
The European Commission is expected to fine Spain on Wednesday (26 July), but it will give two extra years to Madrid to adjust its budget - while the commissioners pledge a solution for Italian banks that will protect small investors.
European Commission Vice-President Valdis Dombrovskis warned Athens on Tuesday (27 October) of a possible haircut in Greek deposits in the event that the first bailout review was not completed this year. EURACTIV Greece reports.
Eurozone finance ministers pledged on Monday to agree a bailout for Cyprus by the end of March. The total bailout could be up to €17 billion.
The Eurogroup said that while Europe is ready to help the island, details on how the potential rescue will be financed are yet to be worked out.