EC loses appeal in Italian bailout case

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By Tyler Davies
03 Mar 2021

Market participants will be reassessing the role of deposit guarantee schemes in European Union bank bailouts after this week’s ruling by the European Court of Justice that the 2014 rescue of Banca Tercas should have been upheld as lawful.

The ruling is a blow for the European Commission. In late 2015, the body ruled that Italy had supported Banca Tercas with “incompatible state aid”.

It argued the Italian deposit guarantee scheme (FITD) acted on behalf of the government when it prevented the bank’s failure with a €300m ...

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