The new Single Resolution Board intervened for the first time early this morning (7 June) to save Banco Popular, a troubled Spanish bank whose deposits were protected without using taxpayers’ money after Banco Santander decided to acquire its assets.
Italy's plans to bail out two regional banks pose a dilemma for European regulators, who are still considering whether Monte dei Paschi qualifies for state aid, three months after giving a preliminary green light.
The head of Germany's Ifo economic institute believes Italians will eventually want to quit the euro currency area if their standard of living does not improve, he told German daily Tagesspiegel (1 January).
Italy's banking problems can be solved and the EU will do everything to help, European Commission chief Jean-Claude Juncker said yesterday (14 December), dismissing fears of something akin to the euro crisis.
With a brewing banking crisis as a backdrop, Paolo Gentiloni was named Italy's new prime minister on Sunday (11 December), filling a void left by close ally Matteo Renzi, who quit after a crushing referendum defeat.