Italian banks have not engaged in creative financing or other risky financial operations and thus are more sound that those in other western countries, Economy Minister Giulio Tremonti said on Thursday.
In an appearance before parliament to illustrate the actions the government has taken to offset the repercussions in Italy of the global credit crisis, the minister added that the conservative ''and even backward'' structure of the Italian banking system had in the end protected it from the severe consequences of the credit crunch suffered by banks in other countries.
The measures adopted by the government in a decree hammered out Wednesday night, Tremonti observed, ''were timely and in line with the guidelines established by the European Union''.
EU action to combat the crisis, he added, ''has been coordinated as much as possible''.
In its emergency decree, the government confirmed a minimum state deposit insurance of 103,000 euros; authorised the Treasury and the Bank of Italy to temporarily acquire shares in troubled banks but without benefiting from any voting rights in shareholders' meetings; and said that state aid to financial institutions would be decided on a case-by-case basis.
In his report to Parliament, first to the House and then the Senate, Tremonti confirmed that no protection would be given to those executives responsible for creating debt, as EU economic and finance ministers agreed earlier this week.
The minister went on to promise that an amendment to the bill on the break-up and sale of national carrier Alitalia which gave protection to management would be eliminated.
The existence of the measure was singled out by a TV new magazine show and was front-page news Thursday in the Rome daily La Repubblica.
According to La Repubblica, the measure would not only have avoided Alitalia top brass from being held responsible for the airline's failure, but also those executives and bankers responsible for the bankruptcy of food multinationals Parmalat and Cirio.
Speaking before Parliament, Tremonti said ''this amendment is in marked contrast with the mentality of this government. Either the amendment goes or the economy minister will go''.
