(Finance) – It will be presented to the ESM board of governors on Thursday a report on the review of the Mechanism regarding the “maximum lending volume, adequacy of the authorization of the share capital and financial assistance instruments”. This is what emerges from the agenda.
In the board of governors sthe twenty finance ministers of the Eurozone meet, members of the instrument, and the annual report will also be approved on Thursday in Luxembourg. However, there is no point on the agenda regarding Italy’s missing ratification of the ESM but, from what we learn, the expectation is that questions will be asked in this regard to Minister Giancarlo Giorgetti.
The report on the review of Mes was requested from the Mechanism staff a year and a half ago, in 2022, cwith the idea of starting an overall reflection on the instrument also following the updated treaty which should have introduced the backstop from the beginning of 2024, the ‘financial parachute’ to be activated in the event that the Single Resolution Fund financed by the banks of the of the Eurozone finds itself running out of funds to help European banks in difficulty.
However, the backstop remained frozen due to Italy’s failure to ratify the new treaty, with the rejection in Parliament in December, but work on the revision of the ESM continued anyway.
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