La Repubblica Firenze has an agreement with EUI to publish op-eds by academics and this week it was my
turn – to make the direct link to my new host region, I chose the never-ending saga of Monte dei Paschi di Siena, which for me is a mirror of where Europe’s banks, regulators and politicians have gone wrong over the past 20 years: a rapid expansion
before 2008, followed by mounting losses, hidden from auditors and regulators; a government bail-out in 2013, which did not help turn things around and nationalisation in 2017. At the core of this drawn-out failure of MPS has been too close a relationship
between politicians and bankers, which has prevented early and effective intervention.