Deputy Prime Minister Matteo Salvini has categorically excluded the ratification of the European Stability Mechanism (ESM) for Italy, calling it “another European madness”. Salvini declared that the ESM “is of no use to Italy” and invited other European countries to ratify it if they wish.
Economy Minister Giancarlo Giorgetti also expressed reservations, stating that introducing the topic of ESM ratification at this time is “improper”, especially in light of the recent confrontation at the European Union summits. Giorgetti underlined that the Italian Parliament is currently not in a position to approve the revised ESM treaty.
In the meantime, the European Union has outlined the new trajectories envisaged by the Stability Pact, opening a discussion with Italy for the multi-year spending plan to be presented in the autumn. The required fiscal adjustment for Italy is expected to be around 0.6% per year, equivalent to around 12 billion euros.
Giorgetti commented on the new numbers from Brussels by speaking of “simulations” and confirmed the government’s commitment to maintaining the declared deficit objectives, with particular attention to the reduction of contributions for medium-low incomes. He also reiterated that there will be no cuts to healthcare, underlining that funding has been increased.
On the future of the ESM, Giorgetti praised the reflections for a possible change, suggesting a use similar to a European sovereign fund, for example for defence. However, he recognized the resistance from the Nordic countries, making the hypothesis of change impractical.
