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On Wednesday, Parliament will vote on the communications of the President of the Council on the reform of the ESM, a European institution that aims to help the countries of the eurozone during economic crises and which in recent years has become one of the issues most discussed in Italian politics. .
First the Chamber and then the Senate will listen and vote on Giuseppe Conte’s communications on why Italy will support the reform and until a few days ago it seemed that in the Senate the government would have struggled to obtain a majority of votes, with unpredictable consequences for its stability. However, the newspapers write that the majority parties have found a new political agreement, to reassure the MPs opposed to the reform (especially in the M5S) and avoid surprises in the vote tonight.
What is MES, in summary
The European Stability Mechanism (also known as ESM and by its acronym in English, ESM) is an intergovernmental organization of countries that share the euro as a currency, and has the task of helping those who are in difficulties. economic. It is a very important component of the monetary union: it serves to pool everyone’s money and use it in the event that a member state finds itself in difficulties, since, by sharing the same currency, the difficulties of a country can also have consequences. in others.
In short, all eurozone countries contribute to the financing of the ESM and in case of difficulty they can request their help. In return, countries that turn to the ESM must, however, commit to reforms that are often highly unpopular and which are the real reason why many Italian parties describe the ESM as a tool for imposing drastic reforms and handing over sovereignty to more countries. in difficulty.
– Read also: What is MES, well explained
What reform are we talking about?
The reform of the MES has been discussed since 2018 and for much of 2019 it was blocked by the first Conte government, the one supported by Lega and Movimento 5 Stelle. It foresees two substantial changes, which have been debated in Europe for a long time: a single resolution fund to help the most troubled European banks, financed by the European banks themselves with an availability of 55 billion euros, and the obligation of an un country requesting help from the ESM to issue particular government bonds (the so-called “single-strand CAC”) that will allow creditors a “restructuring” of the debt, that is, a reduction, by a single vote, instead of of with the more complex procedures of other types of government bonds.
This means that a country in trouble could give less than it owes to its creditors, which is good; but the least good – and feared – is that the creditors, knowing this possibility, end up asking for higher interest from the countries they perceive to be at greater risk, such as Italy.
For the moment, however, the hypothesis of a new banking crisis is considered very remote, and all the countries of the European Union have spoken in favor of the reform of the ESM, even those that in the past had resorted to its lines of advice. credit.
Who decides on the reform of the ESM and what does Parliament vote on?
The reform of the ESM will be debated during the European Council – which is the body of the European Union that includes the 27 heads of State and Government – scheduled for December 10 and during the Euro Summit, that is, of the countries that are part of the eurozone. , of December 11. At the European Council, Italy will have to present its decision on the reform, which the Italian government intends to approve: if the European institutions approve the reform, the parliaments of the different countries involved will have to approve it in turn.
With the vote on Wednesday, Parliament will therefore limit itself to approving or rejecting Conte’s communications, which in his speech will explain why the Italian Government will approve the reform of the ESM at the next Euro Summit.
Because we talk about risks for the government
The MEDE vote is not a vote of confidence in the government, which even if it were in the minority would not have the obligation to resign. However, around the ESM vote, there have been great tensions in the majority for some time and the government would have great difficulty moving forward if with tonight’s vote it effectively lost the majority in Parliament.
– Read also: Dec. 9 vote on the ESM, explained
A part of the 5 Star Movement is historically very skeptical about the ESM, perceived as an instrument of intrusion of the European institutions in the national dynamics. On December 2, 58 M5S deputies belonging to the radical wing – 42 deputies and 16 senators – signed a letter explaining their opposition to the reform, including the introduction of the “single member CAC” and other more general criticisms. The very strong internal tensions between the moderate and radical branches of the party, on this and other issues, have also led in recent weeks to a division of the group in the European Parliament. The government in the Senate may have a very small majority and even the vote of a few M5S senators against the reform could be decisive.
The numbers in the Senate and the agreement in the majority
To be approved, the motion on Conte’s communication needs a relative majority: that is, that the Yess exceed the No in both Houses. From the start of Conte’s second government, the problem will be the majority in the Senate, where it currently controls about 170 out of 320 senators. The opposition has 149: to reject a motion presented by the government, in short, it would be enough to subtract them from most. a dozen votes.
The newspapers had reported between 6 and 10 M5S senators opposed to the reform, enough to make the outcome of the vote highly uncertain. The three senators belonging to Cambiamo, the party of the president of the Liguria region, Giovanni Toti, could vote with a majority, while the other opposition parties should vote against the reform (despite the fact that even among them it is an issue divisive).
In order not to lose the vote in the Senate, on Tuesday the majority parties met to seek a kind of compromise that would put everyone in agreement: and it seems they have succeeded. The agreement found – described to the newspapers as “satisfactory for all groups” – provides in summary for the approval of the reform of the ESM and a common majority line that will commit Italy to propose new reforms of the ESM and other institutions and regulations that some Parliamentarians perceive it as unfair.
M5S Senator Barbara Lezzi wrote on Facebook that “I spent two whole days with 60 other MPs to mediate positions, to find a point of decline and to make sure not to be remembered as those who have already made a bad instrument worse without having had anything. in exchange for the protection of citizens. Thanks to this work, a resolution has come out that is not ideal but, at least, it vindicates the role of Parliament in the ratification and warns that it will not be ready for the final vote if there is no significant advance of the rest of the reform package (Edis above all) ».
Work in the House will begin in the morning, while Conte will speak in the Senate at 4 in the afternoon: between explanations of vote and Conte’s responses, the vote is likely to take place in the afternoon.
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