Financial Times FT.com

Confusion hampers Italy and Spain efforts

By Victor Mallet in Madrid and Vincent Boland in Milan

Published: October 7 2008 02:52 | Last updated: October 7 2008 02:52

Spain and Italy struggled on Monday to map out a path through the banking crisis engulfing Europe, amid continued confusion over whether European governments would try to act in concert or would be content with hastily announced national solutions.

Senior officials in the Spanish government have pushed for a concerted response by the European Union and have privately criticised unilateral moves by Ireland and Germany to provide blanket guarantees for bank deposits. “It will be like dominos,” said one official. “Now everyone will have to do it.”

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