German Plan for Europe's Banks Met With Italian Opposition
- Gualtieri rejects Scholz’s demand on sovereign debt holdings
- Comment shows tough talks ahead before any future agreement
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German Finance Minister Olaf Scholz’s plan to break the deadlock over European banking integration received a cold welcome from his Italian counterpart, who rejected a key pillar of the proposal.
Italy remains opposed to stricter rules on banks’ sovereign debt holdings, Roberto Gualtieri told reporters in Brussels ahead of a meeting of euro area finance ministers. “We do not think that this is a condition that is appropriate for the completion of banking union,” he said, referring to the euro-area’s seven-year old push to cut the link between banks and their home countries.