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Italian problems show banking union is long overdue, not premature

The ECB's takeover of Carige impresses the need for a true eurozone banking union

Italian problems show banking union is long overdue, not premature
Photo: iStockPhoto

Happy New Year, Italy.

The European Central Bank’s first act of 2019 was to take over a deeply troubled Italian bank, Banca Carige, and name a small team of managers and directors to engineer a long-delayed cash call. That move, according to the ECB, was the only way to sidestep a “resolution” procedure that would have crippled the bank’s shareholders and bondholders – the junior ones at least.

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