June 29, 2017 / 9:46 AM / 5 months ago

ECB's Weidmann takes dig at Italy's handling of Veneto banks

FRANKFURT (Reuters) - Bundesbank president Jens Weidmann said on Thursday he saw no willingness by euro zone countries to shift decision-making powers to a European level, in a dig at Italy’s move to wind down two failed banks at a hefty cost to local taxpayers.

Deutsche Bundesbank (German Federal Bank) President Jens Weidmann attends the ‘G20 Africa Partnership – Investing in a Common Future’ Summit in Berlin, Germany June 13, 2017. REUTERS/Axel Schmidt

“That (unwillingness) is evident not only in the handling of budget rules but also in the adherence to new rules on winding down banks, especially by countries demanding more mutual liability” he said, according to a prepared text of a speech he is holding in Stuttgart.

The Rome government on Sunday wound down Banca Popolare di Vicenza and Veneto Banca using national legislation and taxpayers’ money, sparking criticism among officials in several European countries.

The deal allows Italy to solve a banking crisis on its own terms, ensuring the two Veneto lenders are not wound down under potentially tougher European rules.

Reporting by Maria Sheahan; Editing by Tom Sims

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