The government led by Giorgia Meloni is preparing to formalize the approval of the European Stability Mechanism (ESM) in December. This decision comes in conjunction with the Ecofin meeting, crucial for the approval of the Reform of the Stability Pact. The latest communications from Palazzo Chigi to the leaders of the European Commission indicate a desire for openness, still informal but not without relevance, especially taking into account the assessment of the economic maneuver by the European executive and the Berlin summit. The objective is to present the ratification of the MEE as a topic of discussion during tomorrow’s meeting between the Italian Prime Minister and the German Chancellor, Olaf Scholz.
The Italian government’s objective, reports Repubblica, is to place the ratification of the Stability Mechanism on the parliamentary table by the first half of December, together with two strategic “political clauses”. The first clause aims to convince the most reluctant members of the center-right coalition, in particular the League, to avoid dissent in the Chamber and not to dissociate themselves from ratification, demonstrating that Italy has obtained advantages in terms of economic rules. The second clause, in the form of “insurance” for the future, provides for the commitment to request a new vote in Parliament in the event that Italy needs to activate the ESM. This approach aims to reassure parliamentarians that even if the Fund is ratified, it will not be used and, in case of future need, parliamentary approval will be required.
Italy is the only European country that has not yet ratified the ESM and, until this happens, the Mechanism will not enter into force. The proposed reform focuses mainly on creating an operational “network” in case of banking crises. The deadline until December is essential, as from January 1st member states and European banks will not be able to count on any protection. This situation has caused concern, especially among representatives of the German government. The Italian Prime Minister’s hope is to obtain greater flexibility regarding the Stability Pact. In particular, the German government insists that the deficit not only stays below 3%, but reaches 2%, creating a kind of security “cushion” compared to countries with more generous spending policies. Eliminating this order would represent significant progress for the Meloni government. We want to show availability in the MEE, trying to avoid new tensions with Brussels over the maneuver and the Stability Pact.
Source: IL Tempo
Emma Fitzgerald is an accomplished political journalist and author at The Nation View. With a background in political science and international relations, she has a deep understanding of the political landscape and the forces that shape it.
