It will be Italy's parliament that
decides whether or not to ratify the reform of the European
Stability Mechanism (ESM), Economy Minister Giancarlo Giorgetti
told a joint session of the Lower House and Senate budget
committees on European union (EU) governance on Tuesday.
"It will be Parliament that will say whether the agreement
negotiated by the Italian government at the time is to be
approved or not," said Giorgetti, adding that the reform of the
EU's bailout mechanism submitted to parliament for approval is
"not for states, if anything it is for the banks".
The minister also denied that the government of Premier Giorgia
Meloni had ever used blackmail in relation to ratification of
the ESM and reform of the European Stability and Growth Pact,
which is still under negotiation in Brussels.
"The fact that there is a correlation between the ESM and the
Stability Pact is in the facts," said Giorgetti.
Italy has been holding out on ratification of the reform of the
eurozone bailout mechanism amid concerns about budget
sovereignty and claims the fund should also be used for growth.
Meloni has also said on several occasions that she wants to know
what fiscal rules the country will be operating under first.
"On deficit and debt the answer is seriousness: it means making
commitments that can be maintained," Giorgetti told the Lower
House and Senate budget committees.
"In the face of challenging rules it is possible for us to
accept in some way, but with respect to rules that are
impossible to follow, out of seriousness I do not believe that
we can say yes," he continued.
"It must not be forgotten that consolidation requirements should
be compatible with the intention of fostering sustainable and
lasting growth in the economy, which could be hindered by
excessive constraints and overly stringent rules," added
Giorgetti, stressing that "the government is willing to seek a
solution, but it must not result in an excessively complex and
potentially contradictory system".
"Italy intends to reduce its debt in a realistic, gradual and
sustainable manner over time, within a framework that protects
and creates incentives for investment," he said.
"In conclusion, I believe that fiscal and budgetary rules are
not the end but the means.
"We will be consistent with this approach."
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