EU set to rule out state aid for Veneto banks: report

Milan

THE European Commission will tell Italy in coming days it cannot use direct state support to rescue two struggling banks in the northern Veneto area, paving the way for their assets to be split into "good" and "bad" banks, La Stampa said on Sunday.

Citing sources at the Italian Treasury and EU institutions, La Stampa daily said Rome's plan of using a precautionary recapitalisation to save the two lenders by using more than 5 billion euros (S$7.74 billion) of public funds was no longer viable.