ESM not against any single State-Lagarde

(ANSA) - Frankfurt, December 12 - The reform of European Stability Mechanism (ESM), the eurozone's bailout fund, "does not intend to damage any member State", European Central Bank (ECB) President Christine Lagarde said on Thursday. The reform has caused a big political furore in Italy, amid fears it could put the country under renewed pressure on the financial markets, and Premier Giuseppe Conte said Thursday that his government is seeking to "improve" it.
    Lagarde said that if the ESM had existed at the start of the Greek crisis, "we would have resolved it more quickly.
    "We can't rewrite history, but having rules, collective action clauses (CACs) to prevent toxic creditor behaviour, benefits any country that is in difficulty". Lagarde also welcomed the idea of Italy setting a limit on the amount of State bonds held by banks.
    She said the opening up of some Italian policy makers to this notion was "a big step forward and any step forward in this area is good news".