The precautionary
recapitalisation of troubled Tuscan lender Monte dei Paschi di
Siena (MPS) has shown that the relationship between the European
Union and the European Central Bank "should be improved,"
Economy Minister Pier Carlo Padoan said Tuesday.
"Better clarity is certainly a key to success," he said.
The banking system is at a turning point, said Padoan, and
the level of non-performing loans "is large but manageable",
close to what it was before the 2007-2008 financial crisis.
But political uncertainty in Europe "risks stopping reform
efforts," Padoan said, stressing that banking union "must be
completed, with a sharing of the risks".
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