Ratifying the Mes reform treaty “will follow up on our country’s commitments to its European partners” and for this reason “the government confirms its intention to present the ratification bill to the Chambers”. This was stated by the minister of the economy, Daniele Franco, when asked about the time question on the timing of ratification.
Franco recalled that the revision agreement of the treaty establishing the European stability mechanism (or bailout fund) was signed in January 2021 “by each country with full signatory powers” and “helps to protect the financial stability of the euro area “. With, among other things, a backstop function for the single resolution fund of the banks “starting from 2024”, but “with an early introduction to 2022 matured in the light of a positive assessment of some objectives for reducing bank risk”.
“To date – recalled the Minister of Economy – 17 out of 19 member states have completed the relative procedures for ratification, which as regards Italy” will follow up on its commitments towards European partners “.
“Minister Franco announced that the Government intends to resurrect the ratification of the reform of the ESM Treaty, against which this Parliament has repeatedly ruled against. We have not changed our mind: we are ready to reject with all our forces this umpteenth attempt to reform a Treaty that does not serve Italy’s interests “. The president of Fratelli d’Italia, Giorgia Meloni , writes on Facebook .
“The ratification of the ESM reform treaty is a binding commitment of Italy, but above all it is in the interest of our country which, being the one with the greatest public debt, is the one most interested in completing and updating common financial instruments Europeans “. This was declared by the secretary of + Europe and undersecretary for foreign affairs, Benedetto Della Vedova . “Those who still today, after the Next Generation Eu and the policies of the ECB, think that Italy may not ratify the new ESM, simply repeats the pattern of anti-European propaganda”, concludes Della Vedova.
“My government has already worked on the Mes. Let’s see the changes, we will discuss them, if they are sustainable we will support them”. Giuseppe Conte affirmed itanswering a question on the subject by conversing with reporters at the entrance to the Senate.
“The statements by Minister Franco clarify the timing of the presentation of the bill to ratify the reform of the Mes Treaty. We have always asked and continue to ask all political forces for great seriousness and attention to merit, putting aside purely demagogic ideological totems. “. This was stated by the deputy democratic group leader in the Chamber, Piero De Luca. “First of all it must be clarified – explains De Luca – that ratifying the Reform Treaty does not imply any decision on the use of this instrument, which is absolutely not on the agenda. On the merits, it should then be specified that the reform improves the initial structure del Mes, an instrument that we remember has already existed for some time, and there are no risks of debt restructuring or of enhanced surveillance of Italian public accounts: there are, in other words, only benefits for the stability of the Economic and Monetary Union, as in in particular the so-called backstop to the Single Resolution Fund for the rescue of banks, and none of the dangers that are evoked in an instrumental way by some political force “.
” We would like to remind the forgetful Giuseppe Conte that it was he who signed the changes to the Mes treaty. What sustainable changes he still wants to discuss and discuss
”. The parliamentarians of Alternativa affirm this . “What we are discussing today – they underline – is the ratification of the treaty, which has been the same for over a year. Probably the former Prime Minister has no idea what he was doing while occupying the rooms of Palazzo Chigi and does not remember that that treaty would be a disaster for our country “.
“The ESM Treaty must be tightened as soon as possible, not only because it contains useful aspects for continuing the process of European integration, but also because it would represent better than anything else the end of the populist season that has done so much damage to this country”. This was declared by the deputy of Italia Viva, Luigi Marattin, president of the Finance Commission, in his reply to the question time with the Minister of Economy Daniele Franco, regarding the request of his colleague Massimo Ungaro on what is the government’s position on the planned changes to the ESM reform and when the government is proposing to present the ratification bill. “In fact, no subject like the MES has been the subject of the worst populist antics this Republic has ever seen. Italia Viva – he concluded – and without hesitation alongside Minister Franco and President Draghi on this and the rest ”. ESM, the missing piece
The reform of the ESM, the European stability mechanism, is a fundamental piece for strengthening the banking and monetary unionwhich the finance ministers of the Eurozone countries have been working on for years. The ratification process of the new treaty started in January 2021 and has so far been completed by 17 out of 19 countries. Only Italy and Germany are missing from the appeal. Berlin is awaiting the verdict – which should arrive within a few weeks – of the constitutional court of Karlsruhe, while initially Italy had assured that it would proceed with the ratification within the past year.
The general objective of the reform of the instrument set up to deal with the crises in Greece – an experience from which it has inherited a rather sinister reputation – is precisely that of going beyond those mechanisms and constraints judged, in the light of the experiences made, not suitable for facilitate the recovery of the countries that need the intervention. Hence the project to strengthen and simplify the use of the tools available to the mes before the rescue of a country, or the precautionary credit lines, which can be used in the event that a country is hit by an economic shock and wants to avoid ending up under stress on the markets.
But the ESM reform was an opportunity to entrust this instrument, managed by the Luxembourg headquarters, with another task:act as a financial backstop for the srf bank-saving fund (the single European resolution fund powered by the banks themselves), should, in extreme cases, the latter run out of resources to complete the orderly bankruptcies of the banks in difficulty . And it is precisely this function that makes the MES a pillar of that banking union strongly desired by Italy.
Under the agreements reached between finance ministers at the end of November 2020, this mechanism, if the ratification process is completed in time, will enter into force within the year and not in 2024 as originally planned.– and especially freed from the mechanisms normally provided – to individual countries to meet the costs associated with the health emergency. But no one has ever resorted to it. Pnrr, 45% of resources in the South
From the data “it appears that a total of approximately 45% of the resources already allocated territorially have been allocated to the South”. This was stated by the Minister of Economy and Finance, Daniele Franco, responding to the question time in the Chamber to a question on the initiatives, including of a regulatory nature, aimed at guaranteeing the full and efficient use of the resources of the National Recovery and Resilience Plan and of the complementary fund intended for the regions of Southern Italy. Franco underlined that “territorial balance is one of the fundamental objectives of the NRP”. And he observed: “There is” full awareness that one of the most critical issues “on which there is the” constant attention of the government is that of the capacity to use resources by local authorities “Payment of the first installment of 24 billion in the coming weeks
“The expected results for 2021 are achieved and we have sent the first payment request to the European Commission for 24 billion. We expect the payment to be made in favor of the Treasury in the coming weeks,” he added. Franco. In June, cut of 200 million out of 191 billion
“The size of the plan will be slightly revised next June in light of the GDP trend of the two-year period 2020-2021. We expect the resources available to Italy to be reduced by about 200 million on 191 billion “, the Minister of Economy later said. “We will find a solution” but considering the total 191 billion, plus the 30 billion of the complementary fund, and “So far 5.3 billion spent, 2.5 billion of which for the railways
“At the moment, if we look at the progress of the Plan so far we have incurred expenses for 5.3 billion, 2.5 billion relate to the railway sector”. “The funds disbursed so far – Franco explained – concern the projects that existed before the Plan, and also in 2022 we will finance above all this type of project. The Plan finances projects of this type for 51 billion”. In 2024, the minister added, “we will move on to new projects”. Choral effort
And an “Overall plan for the country with many dimensions and facets, which requires continuous work” and for a policy of relaunch “we need a joint effort involving Parliament and the government” but also the production system. “We also need an effort from the production system – Franco observed – the Plan seeks to restart the growth of the country and can be successful if the production system is involved and takes the positive aspects of the Plan to invest and innovate in turn”. Dear energy
“Another open problem is that of raw materials and the cost of energy and how this impacts on the implementation of the Plan. There is a lot of uncertainty about how long energy costs will remain high and on the trend in the cost dynamics of raw materials. It is too early to have a quantification but we must be aware that there is a relevant problem and ready to see, if prices remain high, how this problem should be addressed “. “The EU legislation provides for a procedure for revising the contents of the Plan where factors arise that call into question the objectives. This is a matter to be aware of also in order to intervene in the coming months”. Time challenge
“The Plan represents a complex challenge, especially in terms of implementation times. Our experience in the construction of public works, whether with national resources or with European resources, is not satisfactory in terms of timing. Hence the need to strengthen capacity technical and administrative, to have more streamlined procedures and more specialized personnel that are sometimes lacking in public administrations “. “We are taking action on several fronts – explained Franco – to monitor the development of the implementation of the Plan, we must constantly follow the various stages of the Plan and evaluate what is happening and, if necessary, take action to correct. The monitoring system should help us to monitor both delays and open problems “. Watch out for inflation
Inflation “can have very important effects, we are in a situation of uncertainty about the duration of the inflation process. It is an event that was not expected but which until the whole summer and last autumn was an unexpected aspect. The Plan must be followed, monitored and adapted and therefore every obstacle that we face we must understand and find a solution “. “If the issue of inflation becomes an obstacle we will have to intervene, we will have to do it in the coming months when we understand what the inflation rate will be”. “In calculating the resources allocated to Italy – Franco explained -, in light of the Commission’s funding, an inflation rate of 2% taken as the reference rate was taken into account. What was not taken into account and that prices could accelerate like now. This remains one of the main problems “.
