While the FUD of project fear and a few cases of buyers-redemption has rattled around in the UK press for a week, the news is rolling to the adjustment or otherwise that Eruope will make in the face of the EU. Interesting time!
Renzi ready to defy Brussels and bail out Italy’s troubled banks - FT.com#axzz4DQj4oYkn
"The threat has raised alarm among Europe’s regulators, who fear such a brazen intervention would devastate the credibility of the union’s newly implemented banking rule book during its first real test. In the race to find workable solutions, Margrethe Vestager, the EU’s competition chief, has laid out options for Rome to address its banking problems
without breaking the bail-in principles of Europe’s banking union.
Italy is the eurozone’s biggest vulnerability following the shock outcome of the UK vote to leave the EU, with bank stocks plunging by a third. Concerns are building before the outcome of bank stress test results due this month and a constitutional referendum in Italy in early October, on which Mr Renzi has wagered his job. Citi has described the referendum as “probably the single biggest risk on the European political landscape this year outside the UK”.
But Mr Juppé said he did not foresee any concrete action from the 27 remaining EU leaders this year, especially with elections in France and Germany next year. Paralysis, he said, risks emboldening the anti-EU populist parties."