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.<\/p>\n
UniCredit last week agreed to enter into exclusive talks with the Treasury to buy \u201cselected parts\u201d of Monte dei Paschi (MPS), which is 64% state-owned after a 2017 bailout.<\/p>\n
Trade unions and politicians immediately expressed concern over the possible impact on jobs and the economy of Siena and the surrounding region of Tuscany.<\/p>\n
In testimony to parliament, Franco said it was a \u201ca priority of the government\u201d to protect MPS\u2019 workers, the bank\u2019s brand, and the local economy.<\/p>\n
Franco also said he saw no risk that the talks with UniCredit would result in a \u201cbreaking up\u201d of MPS, and warned that an alternative, stand-alone solution for the Tuscan bank would expose it to \u201cconsiderable risks.\u201d<\/p>\n