Meloni says Italy is not ready to reform the euro zone rescue fund – #Meloni #Italy #ready #reform #euro #zone #rescue #fund
ROME, March 15 (Reuters) – Italy’s Prime Minister Giorgia Meloni said on Wednesday that her government would withdraw from the euro zone’s 500 billion euro (526.15 billion dollars) for countries and banks that are cut off from markets need “extra thought” before ratifying bailout reform. .
Europe Meloni, who has often voiced concerns about the Stability Mechanism (ESM), told the Italian parliament that his government would never enter the facility, saying it should instead become an industrial policy tool.
Italy is the only one dragging its feet to ratify the reform European Union is a member.
A number of Italian politicians, including Meloni, have attacked the reform in the past, saying it would increase the risk of restructuring Rome’s huge public debt.
“If the new ESM regulation of the country national if we believe it is not in your best interest … from him Europe it must be time to discuss using it as an instrument of industrial policy,” said Confindustria, echoing the view of the industrial lobby.
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Under the reform agreed at EU level in 2021, but not yet ratified, the ESM, which is responsible for dealing with failed banks in the context of the European Banking Union Unit It will support the Resolution Fund.
It is also necessary for countries national would make debt restructuring simpler, something critics in Italy fear would make such a restructuring more likely.
The ESM usually requires countries to adopt austerity or financial reform programs in return for its support.
“We want to discuss the general framework of European (economic) governance and the possibility that the resources allocated to the ‘bailout’ today can actually be useful for states,” Meloni said.
ESM was established in 2012 and 2010A temporary fund created at the height of the Eurozone sovereign debt crisis in substitute did. To date, five countries have turned to him for support: GreeceIreland, Portugal, Spain and Cyprus.
“I Prime Minister Italy will never use the ESM during my stay,” Meloni said. “And I’m afraid no one else will be able to use it.”
($1 = 0.9503 euros)
Reporting by Angelo Amante and Gavin Jones; Edited by Paul Simao
Our standards: Thomson Reuters Trust Principles.
2023-03-16 07:23:01
Source – reuters
Translation“24 HOURS”