A window with the lettering of Monte dei Paschi di Siena bank

The MPS bailout and the future of EU banking

  • Italy bailed out MPS, even though its failure did not present a systemic risk
  • The EU’s consent to the bailout shows a protectionist, anti-competitive outlook
  • In the future, EU bail-in rules are likely to be flouted again
  • More bailouts in Europe will further burdening budgets and taxpayers

After a botched attempt to persuade old and new investors to put more money into Monte dei Paschi di Siena (MPS), the European Union and the Italian authorities refused to let the bank go belly up and obtained EU permission for a partial bailout. It was the first large-scale attempt to apply the bail-in principle within the EU banking framework, and it failed.

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Professor Enrico Colombatto
MPS’s downfall would not have led to a general collapse of the European banking industry
read more about it in the report
What's inside
  • Italy bailed out MPS, even though its failure did not present a systemic risk
  • The EU’s consent to the bailout shows a protectionist, anti-competitive outlook
  • In the future, EU bail-in rules are likely to be flouted again
  • More bailouts in Europe will further burdening budgets and taxpayers
Who will benefit?
  • Report is targeted to the decision makers in cross country manufacturing – suppliers, manufacturers, logistics.
  • Also considered useful for the administrative university facilities, to better understand the possibe effects of current decisions.
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