Economics

Italian Banks Reel But Monti Has No Regrets for Avoiding Bailout

  • Then-premier says bailout would have worsened debt crunch
  • Contrast with Spain, which rebounded following bank aid

Did Monti do the Right Thing by Avoiding a Bailout?

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The future of the euro zone was hanging in the balance but there was still time for a soccer game.

On a June evening in 2012, German Chancellor Angela Merkel, European Central Bank President Mario Draghi, and then-Italian Premier Mario Monti used a break from their all-night talks to watch Italy take on Germany. Monti’s Azzurri won that encounter but lost the tournament championship three days later -- to Spain.