Italy will not use the support of the European emergency fund ESM as long as the government of Giorgia Meloni is in power. The Prime Minister said so in an interview with Italian television. According to Meloni, the fund is not interesting for Italy because the conditions for support from the pot are very strict.
The ESM, which is based in Luxembourg, can use favorable loans to help euro countries that are in dire straits, as it has done before to keep Greece financially afloat. In future, the fund could also be used for the restructuring of troubled banks or for the liquidation of bankruptcies of such banks.
Criticism
The far-right and nationalist Meloni, who won the Italian parliamentary elections in late September, has in the past often been critical of the European Union and its institutions. This while Italy has the highest debt in the European Union after Greece. The southern European country has also struggled with low economic growth for years, and few steps have been taken to implement reforms for a long time.
Meloni’s predecessor as prime minister, Mario Draghi, initiated reforms to help the economy grow and said he would pursue responsible fiscal policies. But not everyone is confident that Meloni will continue his policy. The financial markets and the other euro countries are therefore keeping an eye on the performance of the Italian government.
Source: BNR
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