The Government launches its plan to protect savers

Rome, 20 December 2016 – During the meeting of the Council of Ministers that took place on 19 December 2016, the Government approved the Report (Italian Version) through which Prime Minister Paolo Gentiloni and Minister of Economy and Finance Pier Carlo Padoan presented to Parliament the request for authorization to update the government financial planning goals for 2017. Updating these goals may prove necessary for the adoption of measures to protect savers in case of risks in the financial sector.

The procedure will comply with article 6, sector 6, of Law n. 243 of 24 December 2012, as was the case after the presentation of the Update Note of the Economic and Financial Document (Italian Version) and before the presentation of the draft budget law for 2017.

The report submitted to the Government was approved on 21 December both by the Chamber of Deputies (389 votes in favour, 134 against, and 8 abstentions) and the Senate (221 in favour, 60 against, and 3 abstentions). The authorization will allow the Government to adopt the necessary provisions to protect savings in cases of banking crises. The Government’s interventions would include the re-capitalisation of banks that do not have solvency problems but that failed to pass the stress tests to hypothetical adverse scenarios; this would ensure access to liquidity under such scenarios.

Thanks to the authorisation the Government will be able to make decisions with financial effects up to a ceiling of € 20 billion. The actual impact on the debt will depend on the type of intervention adopted and the amount of resources that will have to be made available.