Italian MPs block reform of the euro rescue fund
The MPs rejected the proposal for ratification by 184 votes to 72, with 44 abstentions. However, the voting behavior revealed a split within the government camp: in contrast to Meloni's FdI and the Lega, Foreign Minister Antonio Tajani's Forza Italia abstained, among others. In contrast, the opposition populist Five Star Movement voted with the FdI and Lega. The members of the centre-left opposition voted in favour of ESM ratification.
Italian observers now expect that Meloni's government majority will soon submit its own draft for ratification of the ESM reform to parliament. It could attach conditions to Italy's approval - such as a concession from the other EU states on the rules of the EU Stability Pact. The EU states only agreed on its reform on Wednesday after a long struggle.
Founded in 2012 in the midst of the euro financial crisis, the ESM is intended as a kind of fire department to prevent a conflagration in Europe in the event of financial crises. The fund can deploy 500 billion euros to combat crises. It will remain in force in its current form until its reform, which has now been blocked by Italy, comes into force.
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Source: www.stern.de
