Mes, Lagarde’s pressure on Italy: “The ratification would provide a useful tool in case of difficulty”

and the role that the new European Stability Mechanism could play in providing financial support to the Single Resolution Fund. “There have already been several appeals from the Eurogroup for everyone to ratify the reform of the Mes – this is the message of the ECB president referring to Italy, the only country missing from the appeal -. Ratification would be good because it would allow for a backstop (protection net, ed) in case of difficulty and it would be useful for all the countries that have already ratified”.

Minister Giancarlo Giorgetti was not present at the meeting, expected in the capital only in the afternoon, because he is busy in Parliament. “Today I’m dealing with Mef, not Mes” said the owner of the Treasury in response to reporters in Transatlantico. But his European colleagues took care of Mes. “Recent events in the banking sector – explained the president of the Eurogroup, Paschal Donohoe – have reminded us of the work we still have to do. To make our system more resilient we have two priorities. The first is that the European Stability Mechanism can provide liquidity support to the Single Resolution Fund”.

As reported by Pierre Gramegna, executive director of the Mes, several delegations intervened during the meeting to underline the importance of concluding the approval process in order to have this “financial parachute” which “is crucial in the light of the financial turmoil that we have seen”. Also because “the bilateral backstop agreements that are in force will expire by the end of the year”. And the president of the Eurogroup also insisted on this: “It is very important to underline that, while fully respecting the decision that Italy could take never to access the Mes, we need it to be ratified so that other countries can access it in case of necessity”. Which means: even if Italy does not want to use the Mes, it can no longer prevent others from doing so by blocking the reform.