Should the taxpayer now go rescue the Italians?

Gepubliceerd op 11 juli 2016 om 12:42

Italian banks are in trouble. Deutsche Bank wants Europe (again) kicks in to 150 billion euros will save the banks. Is that really necessary?

Should the taxpayer now go rescue the Italians?

"Europe is extremely ill and need to quickly work on its problems, otherwise things go wrong," said the chief economist of Deutsche Bank, which calls for an emergency fund ."I'm not a doomsday prophet, but a realist."

The Chief Economist may not be a doomsday prophet, his analysis sounds ominous. How bad is it, and the taxpayers really need to come here to pass again? RTL Z reporter Martin Veeger years was a correspondent in Italy and answers.

Why there should be such a bailout?

The capital injection would in particular to ensure that there is no domino effect. Italian banks are already longer in trouble, they have many bad loans on its balance sheet.Deutsche Bank is very afraid of that worry about skipping the rest of Europe and that the entire European banking sector went into crisis.

For the ordinary Italian is also very exciting. Their pension funds all have money sitting in the banks that are in trouble. Banks in danger means: pensions at risk.

But the Italian banks are already longer in trouble. Why now some emergency fund?

Since brexit referendum prices of Italian banks fell further, making the Italian problem has suddenly become much more acute. Deutsche Bank itself is very active in Italy and obviously in the rest of Europe, so they really have to lose some.

Moreover, the Deutsche Bank itself is also not very good . They also have an interest in the problem is solved and think that the banking sector can not do on its own.

But uh ... there are still taken correct measures so that taxpayers do not have to jump in?

Yes, one of the new principles of the Banking Union: no bail-out but a bail-in. Not the taxpayer, but the shareholders and bondholders must bleed when things go wrong with the banks. But this Italian problem and the associated risks are so great, says the chief economist of Deutsche Bank, that a substantial rescue plan is needed.

Minister Dijsselbloem indicated previously that primarily private investors have to bleed and that Italy should just keep going with the new rules. The Italian state is allowed, under certain conditions, grant aid.

But the Italians really want that salvation rules temporarily eased to patch up the banks quickly and protect investors. That does not sit Dijsselbloem. "What is possible is that you compensate private investors. That may, and that has happened before. This could be a solution to the social problem that is threatening."

Moreover, the Italian Prime Minister Renzi believes that the main problem in Europe is not his own, but rather banks such as Deutsche Bank .

By Editorial Yahoo! News Photo: Thinkstock

 

After Greece, Italy now finds in financial dire straits.

Theorem: Should Nedeland help Italy?

https://twitter.com/LETSGOTHENEWS/status/752443957989240832

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