Meloni plays credibility on the Mes

Pressure from the European Union, traditional allies are also irritated. Time is running out, Italy is the only country that has not ratified the reform

The Eurogroup yesterday put pressure on the Minister of Economy, Giancarlo Giorgetti, on the ratification of the new Mes treaty. Promises of cooperation are no longer enough for eurozone finance ministers: they want concrete elements on the path that will lead to the vote in Parliament, such as the date on which the government will pass the ratification bill. Time is running out. Italy remained the only country not to have ratified the reform, which would give the Mes the function of “backstop” (financial safety net) of the Single Resolution Fund for banks in crisis. The bankruptcies in the United States and the bailout of Credit Suisse have increased the tension around European lenders. Furthermore, the bilateral national backstops of the Single Resolution Fund expire at the end of the year. Giorgetti’s idea of ​​using the Mes as a weapon of blackmail to obtain concessions on the reform of the Stability Pact or on the European deposit guarantee will turn into a boomerang. Far from imagining debt concessions, the frugal are quick to block progress on the Banking Union. Even traditional allies, such as France and Spain, are piqued that non-ratification interrupts a path towards risk pooling. After all, one of the paradoxes is that Italy had fought against Germany and the Netherlands precisely to obtain the Mes as a “backstop”. In Brussels the negotiations work in the opposite way than in Rome. If Giorgetti insists with veto and barter, the result will be the opposite: Italy out of the tables that count in the Eurogroup. On the other hand, if he manages to convince Parliament, Giorgetti will get credit for other dossiers. The same goes for the prime minister. Giorgia Meloni has made it known that she does not intend to risk the majority on the Mes and that the arguments in favor of ratification are too difficult to explain to a housewife. Thus Meloni not only shows little consideration for the parliamentarians who support her, but she does damage to Italy’s authority and credibility.