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"The government has utilised European rules in the best possible way," said Italian finance minister Pier Carlo Padoan. (Photo: Council of the EU)

EU approves rescue of Italian banks

The European Commission on Sunday (25 June) approved a €17-billion plan by the Italian government to save two failing banks.

The Italian government had decided a few hours before to cut both the Banca Popolare di Vicenza (BPVI) and Veneto Banca into two, to keep their good assets in a "good bank" and the toxic assets in a "bad bank".

The banks, which were weakened by a lack of capital and massive debts due to non-performing (non-repaid) loans, were taken over by the Intesa Sanpaol...

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"The government has utilised European rules in the best possible way," said Italian finance minister Pier Carlo Padoan. (Photo: Council of the EU)

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