Paris attacks a risk for recovery in Italy - minister tells Corriere

MILAN (Reuters) - The recent attacks in Paris could dent economic recovery in Italy, Economy Minister Pier Carlo Padoan said on Sunday, adding, however, that the government did not have any concrete reason for now to trim its growth forecast. In an interview with Italian daily Il Corriere della Sera, Padoan also defended the government's decision to wind up four small domestic banks by imposing losses on the banks' shareholders and junior bondholders. Tougher rules on bank bailouts introduced by the European Commission after 2013 do not allow Italy to shore up lenders with public funds, as Germany and other member states have done in the past, Padoan said. He added that the government was still working on a plan to help the whole banking sector shed some 200 billion euros ($212 billion) of bad loans, another issue regulated by stricter European rules, and said a decision was expected only next year. "The sentiment prevailing after the horrible events in Paris is negative and this could impact the (economic) recovery," the minister told the paper. "There could be some effects but, at the moment, we don't have any concrete element to revise the forecast (for this year)," he said. Italy emerged from a three-year recession at the start of this year. Rome is forecasting growth of 0.9 percent this year, strengthening to 1.6 percent in both 2016 and 2017. The government is under fire from small savers and the banking association after it passed an emergency decree last week to undertake a 3.6 billion euro rescue of four small banks. "The rescue spares depositors," Padoan said. In a separate interview with Italian newswire Ansa, Roberto Nicastro, who has been appointed chairman of the four banks, said that "a ton of restrictions, including European rules," was limiting the possibility to reduce losses imposed on 10,000 clients of the small lenders. ($1 = 0.9444 euros) (Reporting by Francesca Landini; Editing by Andrew Bolton)