At the risk of overgeneralizing, Germans and Austrians have a different take on rules than do, say, Italians. For the latter, rules tend to be an anti-bucket list of lines to transgress in a happy lifetime. For the former, rules codify the unquestionably right way of doing things which is why, after careful consideration and analysis, they have imposed them on their less-principled wards within the European Union. So the best Germany’s austere finance minister, Wolfgang Schäuble will say about the wonderfully Italian state of Italy’s banks is, let’s see what happens before we start cutting checks. And Austria’s finance minister says that if checks must be cut they will have to be cut in the right way, no matter what Boris Johnson did or how many rotten tomatoes angry Italian bank investors will hurl over the border.
Austria’s Finance Minister Hans Jörg Schelling said the market turbulence that followed the U.K.’s decision to leave the EU mustn’t be used to water down the bail-in rules.
“What is happening in Italy has absolutely nothing to do with Brexit. These nonperforming loans that are now meant to be moved into a ‘bad bank’ have been there for many years” he said.
“You shouldn’t use Brexit as an excuse for your own mistakes.” Mr. Schelling said.