Italy's Bank Funeral Shows EU Still Using Crisis Playbook
- Banking Communication issued in 2013 has never been updated
- Giegold says bailout is ‘outrageous circumvention’ of EU rules
The EU laid down new bank-failure rules in 2014, after member states used almost 2 trillion euros to prop up lenders during the crisis.
Photographer: Alessia Pierdomenico/BloombergThis article is for subscribers only.
A decade has passed since the start of the financial crisis, but when it comes to handling struggling banks, the European Union still hasn’t moved on.
Italy’s taxpayer-funded wind-down of Banca Popolare di Vicenza SpA and Veneto Banca SpA highlighted the patchwork of EU and national laws and guidelines that govern the funneling of public money to banks, despite years of work on a common rule book intended to end the era of big bailouts.