Mes, EU pressing continues: “The Eurogroup awaits clarifications on the ratification”

MILAN – Europe is once again pressing Italy for the ratification of the month. This was clarified by European sources this afternoon, explaining that the go-ahead will be part of the discussion on the banking union at the next Eurogroup, and it is expected “that the Italian finance minister will clarify what the government’s plans are”.

“Ratification is a prerogative of national parliaments and we must respect this process”, highlighted a senior official ahead of the meeting scheduled for Monday 15 May, specifying however that the “expectation” is that the “political agreement” reached between the government representatives “be honoured”. “We will listen carefully to how the Italian government intends to proceed,” he added.

Currently, Italy is the only European country that has not yet ratified the reform treaty, signed by the Conte government in January 2021.

Next Monday the finance ministers will have a discussion on the situation of the banking system in relation to recent events in the USA and in Switzerland (credit suisse) and, in particular, on the risk of liquidity and flight of depositors. The EU source explains that this is a general discussion to verify whether measures need to be taken in the EU from the point of view of the regulatory framework starting from the positive basic assessment of the solidity of the European banking system both as regards assets and as regards liquidity ratios.

In any case, ‘it is too early to draw conclusions, the situation that has emerged in the financial markets does not concern the EU but we must think in time about eventualities from the point of view of regulation for the future”, indicated the same European source. “For now, no there’s nothing definite, we’re not preparing anything in the kitchen,” he added.

Next Monday the finance ministers will meet with the head of ECB banking supervision Andrea Enrico on the state of the Banking Union.