what happens now (and when the treaty is ratified) - Corriere.it

what happens now (and when the treaty is ratified) - Corriere.it

The Foreign Affairs Committee of the Chamber approved the basic text of the Mes ratification bill. In the absence of the majority deputies, who chose not to appear, the text was voted on by Pd, Iv-Azione and Avs. While the M5s abstained. The text is now being examined by the Budget Commission and then returned to the Foreign Affairs Commission in the next few days. The text voted by Third Pole and Pd will arrive in the Chamber on June 30, but it is probable that the majority will ask for the group leaders to be referred back to the Conference, perhaps until after the summer in the Chamber. New majority episode on the #Mes. They do not appear in the Foreign Affairs Commission. Unjustified absentees and without government opinion. Now the basic text will go to the courtroom, but the question doesn't change: they don't know what to do. We are in Parliament, but they continue beyond all decency, attacks the Pd group leader in the Foreign Affairs Committee Enzo Amendola.

The political confrontation

The issue of ratification fuels tension in the government, especially after the technical opinion that the Ministry of Economy and Finance sent to the Foreign Affairs Committee of the Chamber, which explains that the validation of the ESM reform does not involve risks for Italy . Indeed, 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, reads the letter signed by Minister Stefano Varone's head of cabinet. Parliament decides on the Mes. If the discussion arrives in Parliament, we will vote there. That of the Ministry of Economy is a technical opinion. Technically one can account for what the public budget then politically the whole center-right, from Meloni to myself, has always believed that at the moment the Mes is not a useful tool for the country, declared the Minister of Infrastructure Matteo Salvini before the vote in committee. Yesterday I was having lunch with Giorgetti - he said again - We talked about this and much more and we are in perfect harmony.

Visco and Giorgetti at Palazzo Chigi

In the morning, the Governor of Bank of Italy Ignazio Visco and the Minister of Economy Giancarlo Giorgetti were at Palazzo Chigi. According to ministerial sources, Giorgetti took part in a meeting on Ilva that had been scheduled for some time. While Visco met Prime Minister Giorgia Meloni. Despite the technical opinion of the Ministry of Economy, the stalemate on the ESM has not yet been overcome and the position of Italy, the only country to block the reform, risks weakening the government's negotiating position on the Stability Pact and beyond, as Federico underlined Fubins on Corriere della Sera.

What changes with the reform

In 2018, EU leaders decided to expand the powers of the Mes, for the new functions to come into force it is necessary for all countries 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.

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