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Merkel and Renzi during a meeting in Berlin, earlier this year. (Photo: Palazzo Chigi)

Merkel rebuffs Renzi's bank plan

German chancellor Angela Merkel poured cold water on Italian prime minister Matteo Renzi’s plans to temporarily side-step EU rules on state aid in order to shore up Italy’s struggling banks.

Merkel told reporters on Wednesday (29 June) that the bloc’s recent laws offered enough leeway already.

"We cannot renegotiate every two years the rules of the banking sector," Merkel said.

Renzi retorted that Italy wasn’t asking for ...

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Merkel and Renzi during a meeting in Berlin, earlier this year. (Photo: Palazzo Chigi)

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