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Sometimes problems like this can be caused by poor connections to the electronic steering column itself causing the failure light to come up without any noticable issue with the steering..you need to remove the column surrounding trim and locate the multiplugs connections underneath into the steering column control unit and ensure they are fitted in properly...alternatively there is a chance this maybe on its way out as Punto EPS/City steering is a very common fail point on these cars..I do hope this helps..
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