Italy govt will protect MPS jobs in UniCredit deal – economy minister

ROME (Reuters) – Italian Economy Minister Daniele Franco said on Wednesday the government will take care to safeguard jobs and the local economy in the case of a takeover of struggling bank Monte dei Paschi di Siena by larger rival UniCredit.

UniCredit last week agreed to enter into exclusive talks with the Treasury to buy “selected parts” of Monte dei Paschi (MPS), which is 64% state-owned after a 2017 bailout.

Trade unions and politicians immediately expressed concern over the possible impact on jobs and the economy of Siena and the surrounding region of Tuscany.

In testimony to parliament, Franco said it was a “a priority of the government” to protect MPS’ workers, the bank’s brand, and the local economy.

Franco also said he saw no risk that the talks with UniCredit would result in a “breaking up” of MPS, and warned that an alternative, stand-alone solution for the Tuscan bank would expose it to “considerable risks.”

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