Mr. Padoan defends the Italian Banking Sector Italy's finance minister, Pier Carlo Padoan, has spoken today to calm the concerns surrounding Italy's banking sector. Mr. Padoan rebuffed the idea that there was a need for recapitalisation stating that the "...banking system is solid and has only a very few specific critical situations.

Mr. Padoan's dismissal of any capital injection from private investors and his strong words in support of the Italian banking sector seeks to reassure the other finance ministers of Europe ahead of the publication of the crucial European banking "stress test" results on 29 July, whilst he continues to negotiate a solution with the EU's executive European Commission.

At all costs will Mr. Padoan seek to protect small private investors and avoid a repeat of the situation in November where the rescue of four small lenders resulted in thousands of small investors protesting at their losses.

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