Italian Prime Minister Giorgia Meloni has opposed the revision of the euro area's bailout fund and urged lawmakers to prioritize an agreement on new EU fiscal rules. She criticized the decision by lawmakers to start the process of revising the European Stability Mechanism (ESM) treaty, which all other euro-area countries have ratified. Meloni has repeatedly emphasized that an agreement on new EU fiscal rules should take precedence over a change to the ESM treaty.
The ESM debate has been politically contentious for years, but it has become pressing for Meloni's government following an assessment by the Finance Ministry this week that the reform would not put Italy's economy at risk. The assessment also dismissed concerns that tapping the revised fund would increase the risk of restructuring Italy's public debt.
Despite reports of tensions within her government coalition after the death of former Prime Minister Silvio Berlusconi, Meloni dismissed them as "surreal". Tensions within her coalition, which includes Meloni's party Brothers of Italy and Matteo Salvini's League, were intensified by an investigation into Tourism Minister Michela Santanchè, a Brothers member, for alleged false accounting. Meloni welcomed the minister's willingness to answer questions from Parliament on the matter.
"Our government is working well," Meloni stated. "This government's strength is reflected in the economy."
In summary, Meloni is urging Italian lawmakers to prioritize an agreement on new EU fiscal rules over a revision of the ESM treaty. The assessment by the Finance Ministry this week found that the ESM reform wouldn't endanger Italy's economy, and Meloni dismissed reports of tensions within her government coalition.