The reform of the European Stability Mechanism. Critical issues for the Italian national interest is the twenty-third Dossier of the Machiavelli, by Luca Ruggeri.
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- The ESM fund was created through an intergovernmental treaty, therefore outside the legal framework of the European Union.
- The amendment to the founding treaty of the ESM gives it a new function, as support for the single bank resolution fund, but at the same time makes further changes that have little to do with the new function.
- With regard to the governance of the Fund, the modification of the treaty assigns important competencies to the Director General of the Fund, placing him on an essentially equal footing with the Commission, particularly with regard to the assessment of the sustainability of sovereign debt, which was also introduced at the same time.
- The new rules for access to precautionary credit lines make them unusable by many countries, including Italy.
- The collective action clauses with single majority voting (CACs single limbs) foreseen in the treaty amendment allow for the restructuring of all state issues with a single vote; the ESM thus appears to be an instrument for the orderly restructuring of public debt.