New EU rules will make bailouts and bail-ins harder to facilitate...
Eurogroup president, Jeroen Dijsselbloem has said that Italy's banking sector will be dealt with "gradually" and that its current difficulties do not amount to an "acute crisis."
His comments come amid threats from Italy to sidestep EU regulations to pump billions of euros into its faltering banking system - this would break the EU's rules on assisting struggling banks.
Mr Dijsselbloem stressed the need for Euro states to respect the "strict" new rules which have been introduced to require creditors to take losses before public money can be put into banks.
"There have always been, and will always be, bankers who say we need more public money to recapitalise our banks, and I will resist that very strongly, because again and again it’s hitting on the taxpayer, again and again increasing sovereign debt in countries that are heavily indebted," the Dutch representative told the media.
"The problems in the banks need to be sorted out in the banks and by the banks, and the easiness in which some of these bankers are saying ‘we need public money to sort out our problems,’ I think that is really problematic," he continued.
The values of bank stocks in Italy have plummeted by more than one-third since the UK decided to leave the EU. The sector has been considered vulnerable for some time and investors fear negative findings when the results of stress tests are published later in this month.