Italy rejects ESM reform. Now Euro Area has to start over again

The Italian House of Parliament, called “Camera,” rejected authorization to ratify the Mes. There were 184 no-votes, 72 yeses, and 44 abstentions. In a vote that saw both majorities and oppositions divided, Fdi, Lega, and M5S voted against. In favor were Pd, Azione, Italia Viva, Più Europa, and part of the Misto. Forza Italia, Alleanza Verdi e Sinistra, and Noi Moderati abstained. In the end, Parliament does not ratify, and either the ESM is amended or they will have to come up with something else.

“Parliament rejects the ESM: Italian pensioners and workers will not risk bailing out foreign banks. And patience if they get angry on the left. A League battle fought for years and finally won. Forward like this, head held high and without fear,” Deputy Prime Minister and League leader Matteo Salvini wrote on Instagram after the House chamber vote. Borghi also spoke on the issue

Several Lega Economists expressed satisfaction for this result

After the vote in the Budget Committee against the ESM, Giorgia Meloni’s party asked the House for a reversal of the agenda to bring forward the discussion on ratification. A coup to disprove rumors put out by the opposition of escape from the ESM paid off in the vote.

Abstention by Forza Italia, which was called the “responsible vote,. And from tomorrow we will start working again with seriousness and commitment, as Minister Tajani is doing, on the real issues that concern the future of Europe and Italy.”

In this morning’s meeting, the Budget Commission, chaired by the Italian national leader Giuseppe Mangialavori, gave the green light to the contrary opinion with the OK of Fratelli d’Italia and Lega. Forza Italia’s choice instead was to abstain. Oppositions are also on different lines. Against the opinion, in favor of ratification, the Democratic Party, Action, and Italia Viva, while M5S did not participate in the work,.

Now the ESM treaty reform will not be able to go into action. If Germany and France want to use it, they will have to offer a modification of the amendment, such as excluding the ESM’s power to assess the soundness of sovereign debt and limiting its intervention only to the banking system, but without the famous seven-day call for funds. Taking sovereign debt out of the game will greatly simplify things, but it will make the ESM even more superfluous. It will mean that the 500 employees of the Luxembourg Fund will have to come up with something to justify their rich salaries.

Otherwise, the whole thing can be dissolved, and this private fund, financed by states, being closed.