“In the times and ways that the Italian Government and Parliament decide, Italy’s ratification of the European Stability Mechanism should not be in question. It was decided more than two years ago”.
Thus the European Commissioner for the Economy, Paul Gentiloniarriving at the informal Ecofin-Eurogroup in Stockholm, clarifies what member countries expect from Italy, the only one that has not yet ratified the changes to the Mes.
He’s not the only one worried about the Mes. “It would be good if the reform were ratified”, says the president of the ECB, Christine Lagarde. And the president of the Eurogroup is getting worse Paschal Donohoe at the end of the informal meeting: “It is very important to underline that, while fully respecting the decision that Italy could take never to access the capacity that would be created by the ratification of the Mes, we need it to be ratified so that other countries can access it when needed.
Moreover, underlines the director of the Mes himself Pierre Gramegna“we have a timing problem, as the current bilateral backstop agreements will expire by the end of this year, so it is essential that the entry into force of the modified ESM treaty with this backstop takes place by the end of the year”.
Lagarde welcomes the Commission’s proposal on the reform of the Stability pact due to the fact that “it incorporates a stronger enforcement” of the rules than the previous pact and “enforcement is essential”. The new Pact “will obviously be the result of a compromise to be placed as quickly as possible as time is of the essence” and “we will do everything possible to help in this sense”.
Gentiloni also took the opportunity to take up the proposal to reform the Stability Pact presented this week by the Commission: for Gentiloni the fact that there are critical reactions in Germany, but also in the opposite direction in other parts such as Italy “could mean either that we really have a very good and balanced proposal or that we live on another planet, but we don’t live on another planet”. Today on the theme “as they say in diplomacy I expect a constructive attitude”, he explained. “The differences between the various countries” “are obviously there”, but “we are committed to a dialogue. It is a very first opportunity we will have many others, but I am confident that the basis provided by the commission can facilitate”.
What is the Mes and at what point is the ratification process?
by the Economics editorial staff
A passage on the Def mess, with the majority failing to approve the debt proposed by the government, could not be missing. “I trust today”, Gentiloni limited himself to saying.