MNI: No Extension To Four-Month Delay On Italy ESM Vote-Source

The recently approved four-month delay to Italy’s parliamentary vote on the ratification of the European Stability Mechanism treaty will not be extended any further, a source close to the matter told MNI, easing fears of further delays to its passage.

In what is being seen as a victory for the moderate elements in Italy’s governing coalition who are in favour of ratifying the ESM Treaty, the ‘suspension motion’ can’t be extended again according to parliamentary rules, the source explained.

Hardline members of both the Brothers of Italy and the League had pushed for a delay of 12 months and an option to extend the postponement, the source added. The vote will now likely be held in early November.

Italy, the only country in the Eurozone blocking the ESM treaty by holding up ratification, has been trying for months to link its approval to the debate on the reform of the EU’s fiscal rules, but without success so far.

DEEPER UNDERSTANDING

The ‘suspension motion’ is looking for a “deeper understanding of ESM functioning” due to recent changes in the “international context” that might support the case for changes in the fiscal rules or the completion of the Banking Union, developments that would alter the framework in which the ESM operates.

The motion document notes that the ESM is not part of the EU’s institutional architecture so is not subject to control by the European Parliament nor technical control by the European Commission, potentially creating a “conflict with the management of [countries’] economic policy”.

The ratification of the new ESM Treaty includes the creation of a common backstop for the Single Resolution Fund, regarded as key to dealing with any future European banking or financial crisis.