Italy’s coalition government looks set to abolish the Italian Central bank and jail bankers involved in fraudulent activity.
Matteo Salvini, the outspoken head of the anti-immigrant League party, said the Bank of Italy and Consob, the country’s stock market regulator, should be “reduced to zero, more than changing one or two people, reduced to zero”.
In other words get them eliminated, and those “fraudsters” who inflicted these losses on Italian savers should “be send to prison for a long time.”
This latest move against Italy’s financial establishment comes as the two parties which are increasingly at odds with each other amid speculation Salvini may hold elections to become the sole leader of Italy, prepare to run against each other in the European parliamentary elections in May, a contest widely seen as a proxy for national polls.
However, both leaders have increased their attacks against targets, including the EU and French president Emmanuel Macron.
Saturday’s latest verbal crackdown targeting of the Bank of Italy comes after central bankers issued more pessimistic economic growth forecasts for this year compared with the numbers underpinning the government’s budget.
Di Maio and other Five Star ministers said they want to block Luigi Federico Signorini, the deputy director-general of the Bank of Italy, from renewing his term, according to La Repubblica. However, the newspaper reported that the Italian cabinet was divided on the issue.
News Punch / ABC Flash Point Banking News 2019.