The EUROPEAN commission approved on Thursday the restructuring plan for the Italian bank Monte dei Paschi di Siena, which allows a preventive recapitalisation of the Italian state.
It announced the commission in a press release.
Competition commissioner Margrethe Vestager has reached an agreement in principle with Italy’s finance minister Pier Carlo Padoan.
State aid in the form of preventive recapitalisation can only be given in the preventive purposes if the economic situation were to worsen and does not trigger a by the rules, the commission wrote.
It requires a comprehensive restructuring of the bank to ensure its ability to survive in the long term. The state must also receive fair compensation for kapitalinjektionen.
”This solution is a positive step forward for the MPS and for the Italian banking sector. The burden on Italian taxpayers is limited”, said Margrethe Vestager.
The agreement is subject to the ECB approves it in its role as the supervisory authority.
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