Brexit will have 'limited' effect on Italy economy - ministry

ROME (Reuters) - Britain's decision to leave the European Union will have a limited impact on the Italian economy, which will withstand short-term financial market volatility, the Economy Ministry said on Friday. "The fundamentals of the Italian banking system remain solid," the ministry said in a statement after a meeting of the Committee for Safeguarding Financial Stability, which includes the central bank governor and the head of the bourse watchdog. Shares in Italy's two biggest banks tumbled on Friday, and global financial markets plunged after referendum results showed a near 52-48 percent split for leaving. The Economy Ministry said Italian authorities were "closely following the situation on financial markets". "The Committee believes that Britain's exit from the European Union will in any case have a limited effect on Italy's economy," the ministry said in a statement. Economy Minister Pier Carlo Padoan said in a television interview with CNN that the outcome of the British referendum showed "we badly need to revamp the European model". (Reporting by Gavin Jones and Steve Scherer)