{"id":21373,"date":"2016-07-03T19:40:37","date_gmt":"2016-07-04T00:40:37","guid":{"rendered":"http:\/\/olduvai.ca\/?p=21373"},"modified":"2016-07-03T19:40:37","modified_gmt":"2016-07-04T00:40:37","slug":"we-wont-be-lectured-italys-renzi-to-defy-brussels-over-banking-bailout","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=21373","title":{"rendered":"“We Won’t Be Lectured” – Italy’s Renzi To Defy Brussels Over Banking Bailout"},"content":{"rendered":"

“We Won’t Be Lectured” – Italy’s Renzi To Defy Brussels Over Banking Bailout<\/a><\/h3>\n
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With all eyes distratcted by the post-Brexit euphoria, the last week has seen a\u00a0far more existential crisis accelerating in Europe<\/strong>. Italy’s banking system is in tatters (from a\u00a0EUR40bn bailout 6 days ago<\/a>, to\u00a0EUR150 emergency support 3 days ago<\/a>, to a bank bailout and\u00a0chatter of further support from pension funds Friday<\/a>) but, in what seems like a clear admission that things are really bad,\u00a0The FT reports<\/a>\u00a0that Italian prime minister Matteo\u00a0Renzi is prepared to defy the EU and unilaterally pump billions of euros into its troubled banking system\u00a0<\/strong>if it comes under severe systemic distress, a last-resort move that would\u00a0smash through the bloc\u2019s nascent regime for handling ailing banks<\/strong>.<\/p>\n

As we noted previously<\/a>,\u00a0Brexit will be just the scapegoat used by Renzi and Italy to circumvent any specific eurozone prohibitions<\/strong>. And if it fails, all Renzi has to do is hint at a referendum of his own. Then watch as Merkel scrambles to allow Italy to do whatever it wants, just to avoid the humiliation of a potential “Italeave.”<\/p>\n

And sure enough,\u00a0as The FT reports,<\/a>\u00a0Matteo Renzi, the Italian prime minister, is\u00a0determined to intervene with public funds if necessary despite warnings from Brussels and Berlin over the need to respect rules that make creditors rather than taxpayers fund bank rescues,<\/strong>\u00a0according to several officials and bankers familiar with their plans.<\/p>\n

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The threat has raised alarm among\u00a0Europe\u2019s regulators, who fear such a brazen intervention would devastate the credibility of the union\u2019s newly implemented banking rule book during its first real test.<\/strong><\/u>\u00a0In the race to find workable solutions, Margrethe Vestager, the EU\u2019s competition chief, has laid out options for Rome to address its banking problems without breaking the bail-in principles of Europe\u2019s banking union.<\/div>\n<\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"

“We Won’t Be Lectured” – Italy’s Renzi To Defy Brussels Over Banking Bailout With all eyes distratcted by the post-Brexit euphoria, the last week has seen a\u00a0far more existential crisis accelerating in Europe. Italy’s banking system is in tatters (from a\u00a0EUR40bn bailout 6 days ago, to\u00a0EUR150 emergency support 3 days ago, to a bank bailout […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[2015,63,5582,279,281,284,1464,6723,14161,4318],"class_list":["post-21373","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bailout","tag-banks","tag-brexit","tag-eu","tag-europe","tag-european-union","tag-italy","tag-matteo-renzi","tag-renzi","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21373","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21373"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21373\/revisions"}],"predecessor-version":[{"id":21374,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21373\/revisions\/21374"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21373"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21373"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21373"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}