The large level of bad loans continues to be a drag on the European banking system and could spark new crises in the coming year.
Italians will eventually want to quit the euro area if their standard of living does not improve, he told German daily Tagesspiegel.
European bourses closed higher on the last trading day of 2016 after opening in the red.
Markets in Europe ended lower Thursday as the light Christmas trading period continues.
Italy’s interim Prime Minister Gentiloni said the recapitalization of Monte dei Paschi will be “long and complicated”.
European shares open mixed Wednesday as trading resumes after the Christmas break.
The Italian government is likely to have to put in around $6.79 billion to rescue Monte deiPaschi di Siena, sources said.
European stocks were flat in morning trade on Tuesday amid thin volumes during the holiday period in the region.
This is higher than the 5 billion euros estimated by the bank.
The dollar headed into the Christmas break on Friday just over half a percent off highs hit after this month's Fed meeting.
European markets closed around the flat line Friday as trading desks began to thin out in a shortened trading day for some major bourses.
Italy's government approved a state bailout in principle for Monte dei Paschi di Siena on Friday.
The government needs to secure funding in a way that will not harm individual Monte dei Paschi bond holders, says Shane Oliver at AMP Capital Investors.
The Italian government approved a decree on Friday to bail out Monte dei Paschi di Siena.
Stocks fell as investors digested a series of economic data, while the Dow struggled to reach a key psychological level.
More than eight years after the collapse of the global financial system, the Continent's banks are struggling and things may worsen.
The dollar dipped for a second day as traders booked profits ahead of a batch of U.S. data later in the day.
European markets closed lower on Thursday as concerns escalated as to the fragility of the Italian banking system.
CNBC's Andrea Cabrini reports shares traded wildly after the embattled lender admitted there are no anchor investors taking up its share sale.
Italy’s parliament has approved a $21 billion rescue fund for BMPS. Class CNBC’s Andrea Cabrini reports the latest.