MNI BRIEF: Italy ESM Ratification Framed In EU’s Fiscal Debate

Italy’s ratification of the European Stability Mechanism Treaty, which includes a backstop for the single resolution fund, should be framed within EC discussions about the new economic governance framework, with special attention for the Banking Union and the Capital Market Union, Italy’s finance minister Giancarlo Giorgetti said Thursday.

Questioned by Senate lawmakers, Giorgetti said that ESM reform was thought up in a “different economic context” and that current events and debates within the European financial architecture might affect its current design. (MNI: EU Fears Italy ESM Delays Threaten Bank Resolution Review)

It would be good to wait and see the overall reconfiguration of the economic framework after the financial turbulence of the past days before proceeding, Giorgetti said.