Saturday, July 23, 2016
Europe’s next crisis is Renzi and the banks
''Matteo Renzi, the new broom of Italian politics, is in danger of being swept away.
The youthful Italian prime minister who ascended to power in 2014 as the leader of a new generation seemingly destined to clean up the country’s stale politics is now facing a combustive cocktail of financial crisis, political miscalculations, and anti-European populism..''
At stake is not only the future of the 41-year-old former mayor of Florence — but also Italy’s relationship with the European Union and the health of the Continent’s fragile banking system.
Time is not Renzi’s friend. By July 29, EU banking regulators are widely expected to say that Monte dei Paschi di Siena (MPS), the world’s oldest bank, will need an emergency infusion of capital. That decision will sound the starting gun on a rescue package not just for MPS but for the entire Italian banking sector.read more..