Rome rejects European Stability Mechanism, irritates Brussels

The ratification of the European Stability Mechanism treaty (ESM) was rejected by 184 votes, all from Fratelli d’Italia, Lega, and the 5 Stars Movement, a decision many in Brussels are calling ‘regretful’.

“The Parliament rejects the ESM. Italian pensioners and workers will not risk paying for the bailout of foreign banks. And patience if they get angry on the left. A League battle was fought for years and finally won. Forward like this, head held high and without fear,” said Transport Minister and Deputy Prime Minister Salvini.

Among the 44 abstentions were MPs from Prime Minister Giorgia Meloni’s Fratelli d’Itala. Those in favour included MPs from the Democratic Party (S&D), Italia Viva, and Azione (Renew).

Pierre Gramegna, director of the European Stability Mechanism, and Paschal Donohoe, president of the Eurogroup, expressed ‘regret’ for Italy’s decision.

Palazzo Chigi sources emphasise that, in any case, it was “an integration of relative interest and topicality for Italy, given that as its main element it provides for the extension of safeguards to systemic banks in difficulty, in a context in which the Italian banking system is among the most solid in Europe and the West”.

In any case, the same sources continue, “the ESM is in full operation in its original configuration, i.e. to support member states in financial difficulty. The choice of the Italian Parliament not to proceed with ratification may be the occasion to start a reflection in the European forum on new and possible changes to the treaty, more useful to the entire Eurozone”.

Forza Italia – which abstained – is not worried about voting differently to its partners within the coalition.

“The government is united and strong. Forza Italia has always maintained that the MES is an instrument that must be improved, but that it is not in any case an emergency for the country”, said Paolo Barelli, Forza Italia group leader in the Chamber.

Concerning the criticism directed at the government coalition for splitting on the issue, Fratelli d’Italia defends itself: “The proposal to ratify the changes to the MES was submitted by the oppositions. The treaty was decided by the opposition and should not be forgotten. This is the main point. (…) The real rift is between the oppositions, not in the majority. Today they are asking us to make up for what they were not able to do”, said Ylenja Lucaselli (Fratelli d’Italia/ECR).

(Federica Pascale | Euractiv.it)

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