Mes, the Treasury unlocks the ratification: “It can strengthen the BTP”. The Pd: Giorgetti disavows Meloni-Corriere.it

The ratification of the Mesit does not increase the perceived risk on government bondsindeed, to the extent that it is perceived as a sign of strengthening European cohesion, it is possible that the reform will lead to a better assessment of the creditworthiness of the acceding Member States, with a more pronounced effect for those with higher debt such as Italy . This was stated by the Ministry of Economy and Finance in a letter signed by the head of the minister’s cabinet and sent to the Foreign Affairs Committee of the Chamber regarding the ratification of the treaty. In the technical opinion, which inflamed the clash between the majority and the opposition in the committee of the Chamber, the ministry denies most of the arguments used against the ratification, starting from the fact that adherence to the reform pushes towards debt restructuring. As far as the direct effects on public finances are concerned, the ratification of the aforementioned agreement does not give rise to new or greater burdens than those authorized on the occasion of the ratification of the treaty establishing the European stability mechanism in 2012, reads the text.

The clash in the Commission

On June 30, Parliament will have to say no to ratification but work in the committee is proceeding slowly. The Foreign Affairs Committee of the Chamber, where there was tension between the majority and the opposition after the technical opinion of the Mef, will meet again on Thursday 22 June. At the beginning of May, on the initiative of some majority members, the Ministry of Economy was asked for an opinion on the financial charges of the Mes. In today’s session (Wednesday 21 June) the vote was scheduled to choose the basic text between the two draft laws to ratify the Mes presented by the Democratic Party and the Third Pole. The majority asked for more time to examine the issue while the opposition wanted to proceed with the vote.

Pd: Enough with the sovereign chatter

On the #Mes the naked king. Even #Giorgetti finally comes out and promotes its ratification. Enough with the ideology and sovereign chatter of #Meloni and #Salvini, enough with the melina: time for Parliament to ratify the reform treaty, attacks Antonio Misiani, economic manager of the Democratic Party. The non-ratification of the Mes affects the country’s credibility, adds the secretary of the Democratic Party Elly Schlein. Commenting on the letter from the Mef, then, Schlein underlines that the government is divided, they hide it well but the facts prove it. Criticisms against the majority also from 5 Stars, Italia Viva and +Europe. From the majority and from Giorgia Meloni a grotesque comedy continues to be staged on the Mes. Even Giorgetti’s Ministry of the Economy certifies that it is in Italy’s interest to ratify the reform, but they are hostages to the populist demagoguery which has led them to demonize a tool useful for the macro-financial stability of the euro area. Let the comedy end and let’s move on to ratification, says +Europe’s deputy, Benedetto Della Vedova.

Why Italy’s signature is needed and what the reform provides for

In 2018, EU leaders decided to expand the competences of the Mes. On 27 January 2021, the representatives of the member states signed the agreements amending the treaty, starting the ratification procedures. For the new functions to come into force, all countries need to ratify the reform. Italy is the only one that hasn’t done it yet. The ratification of the treaty does not in any way imply the use of the Mes. The reform provides that the ESM assumes the function of backstop (final parachute) of the single bank resolution fund: a 70 billion credit line, to which countries will be able to access if their national funds for bank resolutions are not sufficient, to allow for an orderly bankruptcy in the event of a banking crisis. The Mes will be able to mediate between states and private investors if the restructuring of a public debt is necessary. But applying for financial assistance does not automatically lead to debt restructuring.