European Union states are still divided over an overhaul of rules for the supervision of banks against money laundering, two EU sources said on Wednesday. EU confidential documents show countries had agreed a preliminary common stance on the reform proposed by the European Commission in September which would give more powers to the European Banking Authority (EBA) to counter financial crime, Reuters reported. But one EU source said states were still divided on this issue and it was unclear whether they could reach a deal by the next meeting of EU finance ministers scheduled on Dec. 4.

Food group Barilla said on Wednesday it had presented an offer to buy the second-largest pasta plant in Italy from domestic rival Pasta Zara to boost its production capacity, Reuters reported. Family-owned Pasta Zara has started court proceedings to get creditor protection after its debt spiralled out of control. The factory, which is located near Tieste, in northern Italy, can produce up to 280,000 tonnes of pasta a year, according to one source close to the matter. “The factory ...

Why is Italy’s economy so sickly and has the country’s new government found the cure for its economic ills? As Rome locks horns with Brussels over a draft Italian budget that the European Commission has rejected for breaching EU rules, the Financial Times has consulted leading economists, academics and industrialists about the root causes of the country’s sluggish growth, the Financial Times reported.

Nyrstar NV, one of the world’s largest zinc smelting companies, is collapsing under the weight of its own debt, Bloomberg News reported. The shares plumbed fresh lows on Tuesday and the price of its bonds due next year is now 50 cents on the euro. Analysts say the company is headed for an inevitable restructuring, and the shares will soon be worthless. Here are five charts that explain how this powerhouse producer was pushed to the brink. When it listed in Brussels in 2007, Nyrstar made its money buying zinc ore from mines and smelting the raw material into a refined metal.

Greece’s central bank is working on a plan to help banks cut their bad debts in half, the latest effort to restore trust in the country’s financial system, two people with knowledge of the matter said. Under the proposal, Greek lenders would transfer about half of their deferred tax claims to a special purpose vehicle, which would then sell bonds and use the proceeds to buy some 42 billion euros ($47 billion) of bad loans from the lenders, according to the people. They asked not to be identified because the plan hasn’t been finalized yet, Bloomberg News reported.

European Union governments have reached a preliminary deal to clamp down on money-laundering by strengthening bank supervision, but do not address key loopholes, documents show. A series of money-laundering cases at banks in several EU states have forced regulators to act after public outcry, Reuters reported. The preliminary deal, which could be finalised before EU finance ministers are due to meet in December, confirms proposals made by the European Commission in September to give more powers to the European Banking Authority (EBA).

Italy’s fiscal stimulus plans would leave the country vulnerable to higher interest rates that could ultimately plunge it into recession, the International Monetary Fund warned on Tuesday, recommending instead a “modest” fiscal consolidation to reduce financing costs, Reuters reported. The IMF said after an annual staff review of Italy’s economic policies that any temporary, near-term growth gains from the stimulus is likely to be outweighed by the “substantial risk” of a rapid deterioration.

Shares in Europe’s biggest zinc smelting company Nyrstar crashed to a record low on Monday after ABN Amro said they were virtually worthless and advised clients to “abandon ship,” the Financial Times reported. “Given Nyrstar’s liquidity position and the company’s large debt and interest burden, we believe a debt restructuring process is inevitable,” said ABN analyst Philip Ngotho in a report, reiterating his sell rating and setting a 1 cent target price, down from €1.

Italy's insolvent bank du jour, Banca Carige which was halted on Monday due to events profiled earlier has gotten a last minute lifeline, and after it was unable to raise €400MM in capital in the bond market, it received a €320MM liquidity injection from Italy's Interbank fund, which plans to purchase €320m of Carige bonds, ZeroHedge reported.

The Central Bank of Ireland opted not to change capital requirements on six institutions deemed to be of systemic importance to the Irish economy, The Irish Times reported. A review of what are known as “other systemically important institutions” (O-SII) was consistent with the 2017 review and therefore didn’t require any new policy changes, the bank said on Monday. Bank’s considered “too big to fail” include Bank of Ireland, AIB, Citibank Holdings Ireland, Ulster Bank Ireland, Depfa Bank and Unicredit Bank Ireland.