Glass-Steagall Motion Introduced in Italy's Veneto Region
November 15, 2013 • 6:23PM

A Lega Nord faction in the Veneto Regional Council introduced a Glass-Steagall Motion on Nov. 14, composed by the text voted by the Lombardy Regional Council and a section dedicated to the regional economy. The group is the same as that which has organized a public conference in Treviso Nov. 23 for Movisol expert Massimo Lodi Rizzini. The signers include the entire Lega Nord faction plus three councilmen from three other parties.

The section dedicated to the regional economy says that the Veneto banking system represents 10.7% of the national system, and that 43.8% of it is composed by cooperative banks.

"Credit represents an indispensable driver for growth and development of an economic system. The five most developed Italian regions (Lombardy, Latium, Veneto, Emilia-Romagna and Piedmont) access to 66.6% of total credit issued to firms in Italy. ... The total amount of bank loans to firms in Veneto as of June 30, 2013, is slightly above EU100 billion. Compared to one year before, loans to firms have dropped by 3.4%, less than the national average indeed, where the drop was 4.7%. Such an aspect confirms the hypothesis of a contraction in the volume of credit issuance (credit crunch) to firms in our region too."

Since 2008, "the Veneto economy has been thrown back of seven years"; unemployment has risen to 7.5% and family consumption fell of 2.3%.

After a description of the historical Glass-Steagall Act and the Italian 1936 Banking Act, the Motion calls on the Italian government to draft a bill for "separating commercial banks and investment banks after the principles and the model of the Glass-Steagall Act," and promoting banks linked to local communities. It also calls on the European Parliament, the ECB, and the Ecofin of EU finance, economic, and treasury ministers, to review the bail-in mechanism in order to exclude all depositors and corporate accounts, "even those not protected."

Signed: Caner, Bassi, Cappon, Ciambetti, Conte, Manzato, Finozzi, Lazzarini, Tosato, Toscani, Possamai, Finco, Cenci, Sandri, Valdegamberi, Franchetto, Furlanetto, Corazzari, Stival, Foggiato.