The turbulence hitting
Italian banks "is outside our competence" because "there are EU
rules and directives" on them, European Central Bank President
Mario Draghi said Monday, replying to a question from
anti-establishment 5-Star Movement (M5S) MEP Marco Valli on
whether the ECB foresaw special measures for Italian banks in
view of the December 4 Constitutional reform referendum. "The
best contribution the ECB can give is to ensure that supervision
and regulation are well conceived and implemented," he said. The
Financial Times has warned eight Italian banks are at risk if
the No vote wins the referendum. Italy's debt is sustainable,
Draghi also told the European Parliament. Sustainability is
based on a country's "will and ability to honor its
obligations," Draghi said. "Italian debt is sustainable, on both
fronts". Although Italy is "among the countries with the highest
primary surplus rate," it is still "vulnerable to shock" and
must "persevere in its reform efforts", Draghi said.
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