The Italian Parliament’s opposition to the reforms of the European Rescue Fund

According to the international group Tasnim news agency, quoted by the German “Hamburger Abend Blatt” newspaper, On Thursday, the Italian parliament rejected with an overwhelming majority the reform of the ESM euro rescue fund, which the euro countries had been planning for years. They were from the right-wing government camp. 72 MPs also agreed to the changes that the finance ministers of the euro countries had already agreed to three years ago. 44 representatives refused to vote. In Italy, a coalition of three right-wing parties has been in government since October last year under Prime Minister Giorgia Meloni.

Euro countries have already agreed to reform the ESM treaty in 2020. However, for these changes to take effect, the treaty must be ratified by the national parliaments of all 19 members. In all other countries – including Germany – this happened a long time ago. However, Italy’s opposition has currently blocked this project.

The purpose of these reforms is to facilitate preventive credit lines for countries that are in economic and financial crises. At the same time there should be reinsurance for bank processing. The purpose of this joint fund is to strengthen the European banking system and protect it against financial crises. The ESM is a fund that countries with the euro currency can borrow from in the event of a crisis to ensure that they pay their debts. However, the Italian Parliament on Thursday voted against the expected reform of the regional rescue fund. The euro voted and did not go under the burden of approving the European Union treaty, which was designed to help bankrupt banks.

The opposition parties of the government, this vote crystallized the hostility of the ruling coalition government to Prime Minister Georgia Maloney with the so-called restructuring plan. called the European Stability Mechanism (ESM), a plan that has been approved and approved by other countries of the euro zone except Italy.

The right-wing representatives of the parliament emphasized that the review of this European plan should be allowed for at least 6 months. They will not give the future. Meanwhile, Italian Deputy Economy Minister Maurizio Leo, who was present at the Parliament, emphasized that the government should recognize the Parliament’s decision.

However, despite the Italian Parliament’s vote on Thursday, the European Stability Mechanism (ESM) ) will still be operational, but will not be able to start implementing the rescue plan for sick banks without the approval of Rome, which is among the governments of the Eurozone with the highest level of public debt. He has repeatedly criticized the European Stability Mechanism for requiring countries to implement economic austerity programs or financial reforms in exchange for receiving financial aid, saying that this increases the risk of increasing government debt.

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