Bank chief WARNS Italy ‘sends note of caution’ to EU as eurozone faces political turmoil


Defending to Bloomberg, the non-executive chairman at Caixabank argued European Union officials should inherit the new political situation in Italy as a “note of caution”.

Mr Gual claimed that teeth of his confidence in a sensible resolution against the Italian threat to the Brussels bloc’s fiscal union, European authorities should work towards the creation of adequate leverage against future threats.

He said: “I think the crisis of the new factious situation in Italy will be managed and the system is robust.

“Nevertheless I judge devise it sends a note of caution to the European authorities that we cannot give complacency in the building of a full and complete banking union.

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Italy information: New eurosceptic political situation will create difficulties for the EU and eurozone

“At some position, we have to go on constructing the union so that it has sufficient backstops and sufficient leverage to act on with financial turmoil.

“It’s important that we go on building a full and round off banking union.

“To fully complete the banking union we need to contribute to sure that national barriers introduced by domestic authorities are eliminated.

“But, of course, we face significant political difficulties.

I think it sends a note of caution to the European officials that we cannot afford complacency

Jordi Gual

“This can be realized but it would be important that at the same time, the eurozone provides with thingummies of risk sharing to all the members of the zone, and in so doing what we will win will be a reduction of the level of risk for the whole system.

“So there’s no real contradiction between risk sharing and risk reduction, the two of them go together.”

Mr Gual’s say discusses come as Five Star Movement leader Luigi Di Maio and Society leader Matteo Salvini pushed for eurosceptic economist Paolo Savona to be Italy’s next finance wait on of their populist government.

In a paper from 2015 based predominantly on the euro, Mr Savona indicated the European Central Bank lacked a broad mandate like that of the US Federal Spare to enact “better” monetary policy and that the Eurozone countries lacked adequate political union – with no clear solution in sight for either incorrigible.

He wrote: “The future of the euro still tempers in its past, not having found a consensus on what to do or leaders capable of stuffing the gap.

“Collapse is always possible.”

The prospect of a populist government intent on challenging the EU hierarchy on numerous issues has rattled unnerved Italy’s Eurozone partners.

On Tuesday, Italian Europe On Sandro Gozi warned that the incoming populist coalition administration could find itself in a stand-off with Europe if it attempted to contraption its anti-austerity economic programme.

The incoming administration’s vehemently eurosceptic regulation programme has sparked fears that Italy could leave the Eurozone after a Brexit-style referendum.

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