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The Bundestag requested information from the ECB Surveillance on Italian banks, including in a letter dated 13 June (so immediately after the increase in spreads At the end of May), the President of the Federal Parliament and former Finance Minister Wolfgang Schaeuble, on behalf of the liberal Frank Schäffler, first asked the ECB for (public) data on Italian banks' exposure to debt obligations. They asked instead "how the Italian government bond rate hikes are incorporated in the stress tests" and if the scenarios envision an exit from the euro, even the German parliament has asked "the rate at which banks dich you fail or you risk hiring "and" would pose a threat to financial stability ". This is reflected in the response letter sent to Schaeuble by the Chairman of the Supervisory Board, Bce Danièle Nouy.
The exchange of letters suggests how much attention Germany has on Italy is large (to the point of being obsessed) especially with respect to the obligations of State and banks. Nouy responded by reminding that there are ABE guidelines to determine if a bank fails or is likely to fail (failure or risk of failure). A single element of vulnerability would not be enough to trigger the bankruptcy decision. On the contrary, practice provides that "an overall badysis of the objective elements is performed, both qualitative and quantitative, taking into account all other relevant circumstances and information about the bank". Therefore, "given the number of factors to be taken into account", it is not possible to determine ex ante a level of return on the government bonds in which the banks would fail or risk failing or threatening. financial stability. Nouy also noted that the sovereign debt crisis of 2011 was "problematic for the banks", but since then the resistance of the European sector "has increased considerably". As a result, "the European institutions are now better equipped to deal with a crisis of this type". Regarding the issues of the stress test, Nouy said the exams tolerate "a significant widening of spreads" and are based on an badessment of current risks. Therefore, the controller, recalling the words of the ECB President Mario Draghi, stressed that "the euro is irrevocable and it is not appropriate for the ECB to reflect on the badumptions not provided for in the Treaty on the functioning of the l & # 39; EU ".
to curb German fears? There is no doubt that Italy needs to do more to gain the full confidence of other states and EU investors over public debt, especially after May's self-injurious outflows. But it is also true that in Germany we sometimes look more closely at Italian problems than the problems that led German taxpayers to pay 250 billion state aid to banks. After the Bundestag's letter, some Italian parliamentarians may now want to ask the ECB (perhaps less odd) questions about the weaknesses of German banks, in order to stimulate a further reduction of their risks, before they are shared among all countries in the euro area. (reproduction reserved)
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