Folkerts-Landau Says Banks Deal Undermine Credibility

The video discusses the challenges faced by the European Union in dealing with non-performing loans, particularly in Italy, which hinder economic growth. The BRRD and low interest rates have complicated bank restructuring. Recent recapitalization efforts have reduced systemic risk, but more work is needed. The European Banking Union's credibility is questioned due to exceptions and rule deviations.

What are the potential risks associated with taxpayers bearing the burden of bank bailouts?

In what ways has the Italian banking system improved through recapitalization?