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It will not be easy for Prime Minister Giuseppe Conte to maintain faith in the majority agreement on the reform of the Month and to give content to the “drop point”, that is, to the commitment to the Five Stars, announced by the M5 deputy, Barbara Lezzi. Yesterday, after the European Council on Thursday that unblocked negotiations on the EU budget for 2021-2027, the summit between the heads of government of the euro zone was held. Body that has direct competence over the European Stability Mechanism, which groups together the countries that have adopted the single currency. Eurosummit welcomed the agreement reached in the Eurogroup on 30 November on the reform of the ESM and on the early introduction of the financial buoy of last resort for bank resolution. The advance of the backstop was achieved by Italy thanks to pressure from the Minister of Economy, Roberto Gualtieri. “An important step forward, paves the way for a further strengthening of the monetary union and the banking union,” reads the final statement of the meeting of heads of state and government of the euro zone.
Eurosummit calls for a “gradual work plan with fixed deadlines” to “complete the banking union”. But the document does not mention the single deposit guarantee scheme. That Edis (European deposit guarantee system) that is the basis of the commitment between Conte and the M5s. The majority resolution commits the government to implement the guarantee scheme. Eurosummit’s findings confirm how difficult it is to achieve this goal. The bankruptcy bill for the government could come in January, when Parliament must ratify the ESM treaty.
Banks will be at the center of negotiations in Europe in the coming months. Yesterday the EBA, the European Banking Authority in the annual report of risk assessment of the sector urged the credit institutions of the Eurozone to cut costs, and “those that have already exhausted the room for maneuver to reduce them in their stand size “- only without yet reaching a sustainable level of profitability, could they opt for mergers and acquisitions to take advantage of possible cost synergies. AnS
