Economy Minister Roberto
Gualtieri said Thursday he had held up Eurogroup talks on a
reform of the European Stability Mechanism (ESM) bailout fund
until all the points Italy wanted clarified were "defined".
"I defended Italy's interests and avoided isolation," he
said.
The reform has roiled Italian politics with the opposition
accusing Premier Giuseppe Conte of "betraying" Italians and the
ruling anti-establishment 5-Star Movement (M5S) saying it would
block approval until it was satisfied with changes to points it
said might hurt Italy.
Conte is eyeing a delay to the ESM reform after the issue
caused turmoil for his coalition government.
The reform, which is set to be signed off later this month,
would make the ESM more similar to the IMF, with support for
States in financial difficulty made conditional on debt
restructuring.
Conte reported to parliament on the ESM on after the
centre-right opposition said he had already signed up to a
treaty that penalizes Italy, as it risks creating renewed
pressure on the financial markets, and would not be amendable.
Foreign Minister Luigi Di Maio said his M5S would only back
the reform of the eurozone bailout fund if it is changed.
Foreign Minister Luigi Di Maio said his M5S would only back
the reform of the eurozone bailout fund if it is changed.
The key stages in the ESM reform approval process are an OK
from the Eurogroup this week and one from an EU summit on
December 12-13.
Gualtieri insisted Thursday that he had obtained
clarification from the Eurogroup on all the points the Italian
government deems essential.
"We stopped them from concluding the talks until all the
points we considered essential had been defined," he said.
On one vexed question in particular, the issue of collective
action caluses, "I said with clarity that I would not allow them
to conclude until the conditions Italy laid down were approved,
and they were, after an intense negotiation".
Eurogroup President Mario Centeno said an in-principle accord
had been reached on all the elements of the reform, including
the "explanatory notes" on collective action clauses that Italy
insisted on during the meeting.
But nationalist opposition League party leader Matteo Salvini
was not satisfied.
He said the League would take to the streets Saturday and
Sunday "to ask Italians to give us a mandate to go to parliament
and say stop" to the reform.
Conte on Wednesday ruled out vetoing the ESM reform at the
upcoming EU summit, and also ruled out the possibility of the
government splitting up on the issue.
"I don't see either the first or the second risk," he said in
answering a question on the two possible scenarios.
"When the ESM is signed the political chiefs of the
individual countries will decide, there are times and ways that
we will decide after that".
Eurogroup President Mario Centeno said Wednesday "we can see
no reason to change the text" of the reform to the eurozone
bailout fund.
He said the new treaty on the ESM will be signed "at the
beginning of next year".
After agreement in the Eurogroup and at the mid-December EU
summit, sources said, it will take a couple of months to
translate the text into the various languages needed.
The ESM reform is the subject of intense debate in Italy with
the opposition accusing the government of "betraying Italians"
and the ruling 5-Star Movement (M5S) clashing with partner the
Democratic Party (PD) as well as Conte on the issue.
One of the most controversial issues is whether debt
restructuring will be automatic under the reform.
Nationalist opposition League leader Salvini says the
reform will mean Italian taxpayers paying for German banks.
The German far-right Alternative for Germany says that it
will mean German taxpayers bailing out Italian banks.
Centeno said "the debate is ongoing, today we will take
another important step and then we will weigh the needs for
debate that are present in our countries".
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