BRUSSELS (Reuters) - The European Commission is in contact with Italian authorities over the situation of its banks, the EU commissioner for the euro said on Tuesday, signaling authorities in Italy were ready to act if needed.

"As regards the current banking situation in Italy, we are in close contact with the Italian authorities," Valdis Dombrovskis told a news conference in Brussels after a meeting of EU finance ministers.

"Authorities are prepared and ready to follow up if and where needed," he added.

On Sunday, Italians rejected constitutional reforms in a referendum, leading to the end of Prime Minister Matteo Renzi's government and so raising new concerns about the countries' ailing banking sector.


(Reporting by Francesco Guarascio; editing by Philip Blenkinsop)

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