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"For
the measures planned by the Italian government the bank has to
be financially healthy at its core. The money cannot be used to
cover losses that are already expected," Bild quoted Weidmann as
saying in a summary of an article due to be published on
Tuesday.
He said there must be a risk of severe economic turbulence,
adding: "All this must be carefully examined."
The Italian government approved a decree on Friday to bail out
Monte dei Paschi after the world's oldest bank failed to win
investor backing for a desperately needed capital increase.
Monte dei Paschi emerged as the weakest of some 51 European
banks subjected to stress tests earlier this year by the ECB. It
was given until the end of the year to sort out its problems or
face being wound down.
Since the 2007-09 financial crisis, the European Union has
adopted rules that make state aid a last resort when it comes to
helping troubled banks.
"These (rules) are meant especially to protect taxpayers and put
responsibility on investors. State funds are only intended as a
last resort, and that is why the bar is set high," Weidmann, the
hawkish president of Germany's Bundesbank, told Bild.
(Reporting by Maria Sheahan; editing by David Clarke)
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