The Italian Parliament, with 72 votes in favor, 184 against and 44 abstentions, today rejected the ratification of the amendment of the European Stability Mechanism, thereby rejecting the relevant Treaty.

Only the opposition forces of the center-left Democratic Party and the centrist parties Italy of Values ​​and Action (Azione) voted for the amendment of the Mechanism. Prime Minister Giorgia Meloni’s Brotherhood of Italy party, Matteo Salvini’s League and the Five Star movement voted against it, while Forza Italia, founded by Silvio Berlusconi, chose to abstain.

And the competent budget committee of the Italian Parliament had expressed itself negatively, underlining that “the mechanisms concerning the participation of the Italian Parliament in any process of activating the Stability Mechanism are incomplete, which excludes the Parliament and the Senate from important financial policy options”.

The Secretary of the League and Deputy Prime Minister, Matteo Salvini, commented on the Parliament’s vote, stressing: “the Rome parliament voted against the European Stability Mechanism. Italian workers and pensioners will not be at risk of paying for the bailout of foreign banks.”

Until now, Italy has been the only eurozone country that has not ratified the amendment to the European Stability Mechanism treaty and, after today’s negative vote in its parliament, the changes in question cannot apply, at least for now, to any from the rest of the euro area countries.

The main modifications of the mechanism foresee that it will be able to intervene to deal with banking crises and, at the same time, that countries with a relatively healthy fiscal situation but which may be faced with significant financial problems will also be able to use the mechanism.

Based on these reforms, the debt restructuring procedures for eurozone member countries that may face deep fiscal crises are also simplified.