Eurogroup President Jeroen Dijsselbloem said Italy must respect the EU bail-in rules as it seeks to support some weak lenders laden down by bad loans.
"Other countries managed to restructure their banks with public means and the Italians did not do so at the time," Bloomberg quoted Dijsselbloem as saying. "But now the rules are stricter".
Premier Matteo Renzi's government is in talks with the European Commission on how to help the Italian banking system, which has come under intense pressure on the financial markets since the Brexit vote, without breaking rules against State aid and complying with the bail-in regulations, designed to stop public money being used to save lenders.
"Continuous talks are ongoing with Italy," said a spokesperson for Competition Commissioner Margrethe Vestager.
"Our position has not changed". Giovanni Sabatini, the director general of Italian banking association ABI, said the nation's lenders should not face any major problems due to Britain's vote to leave the EU.
"The exposure of the Italian banking sector to financial institutions and the private sector in the United Kingdom is limited and below that of Germany, France and Spain," he said. "The Italian banks are among those least exposed to the Brexit risk and yet it seems like Italy has been overwhelmed after the vote". Lower House Speaker Laura Boldrini said the EU must help Italy find a solution.
"The banks problem does not just regard Italy. It concerns many other countries that have it the same, or have had it, because the European rules of today don't seem capable of managing the problem in many countries, including Italy," she said. "The solution cannot be national. It must be European. I'm worried".
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