Something has changed in the relations between Italy and the European Union in recent days. First, the Franco-German agreement on the stability pact, which Minister Giancarlo Giorgetti limited himself to ratifying, then the vote in the Montecitorio assembly to definitively cancel the ratification of the ESM, this is a political choice that will affect not only our country, but all Member States. .
“For Italy – explains Antonio Misiani, head of the Economy of the Democratic Party – the balance of these two days is a double loss. Yesterday the Government passively accepted a bad deal, much worse than the proposals of the Commission and Paolo Gentiloni, the proposals themselves very much They criticized it”.
Why is it worse?
“Because it introduces automatic and binding deficit and debt reduction rules that were not included in the previous proposal. So it makes the framework of the rules much more austerity-oriented and certainly more complex.”
What will the next financial statements be like?
“It will be very difficult because the possibility of using the deficit to finance maneuvers is closed. It will also be necessary to find resources to pay the huge mortgage that finances the main budget, which the government wrote in this budget law. All measures, from contribution to Irpef reform, will be valid for only one year. From 2025. “From now on, it will be necessary to find 15 billion euros without using the deficit arm, by entering into the process of correcting the accounts. There will probably be more cuts and more taxes.”
What will be the repercussions of this vote in the ESM in Europe?
“Europe lacks a potentially useful tool to deal with banking crises. The ESM remains in force in its old formulation: the reform has not been fully implemented, and this is also harmful for Italy.”
Do you think the populist axis has strengthened to some extent in this vote in the Parliament?
“Absolutely so, but what stands out most is that there is a stronger split in the majority than ever before, and the complete delegitimization of the Minister of Economy Giancarlo Giorgetti, who must suffer the consequences. We have already asked for his resignation during the parliamentary debate.”
It can be assumed that the majority did not like the agreement reached last night regarding the stability pact…
“The Meloni government created this connection under the illusion that it could use the ratification of the ESM as a bargaining chip regarding the stability pact. Today’s vote against is the most obvious confirmation that yesterday’s agreement ‘is a bad deal for the US’ for Italy and Europe. Italy, in the last 48 hours After what happened, Europe became even more isolated. This situation was revealed dramatically with the last speech of Minister Giorgetti in the Ecofin video conference, after the line was dictated by the interventions of German Minister Lindner and French Minister Le Maire. And about the approval of the ESM After the stupidity, Italy became even weaker”.
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Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
