Italian premier advocates for reform of European stability mechanism

Italian Prime Minister Giuseppe Conte on Wednesday advocated for a reform of the European stability mechanism (ESM) ahead of a crucial vote in Rome on the EU measure.

Both parliament chambers are due to vote on the reform later in the day, after which it is to be confirmed by the EU during a summit on Thursday and Friday.

Italy has long opposed the reform of the ESM, which provides financial help to euro countries in distress, coupled with strict conditions.

The reform also aims to strengthen the European banking system.

In his remarks to parliament, Conte pleaded for European unity and listed the issues the EU will face in the coming months.

The issues including the coronavirus pandemic, terrorism and migration but also internal problems such as a rule-of-law dispute with Hungary and Poland.

“The appearance of the EU is changing at the moment, and we are decided that the new Europe will overcome the strict stance towards austerity,” Conte said.

The ESM is politically toxic in Rome because parts of the junior coalition Five Star movement (M5S) and the right-wing opposition see it as a tool through which the EU can impose austerity on highly indebted countries like Italy.

Italy’s fragile coalition government risks a crisis if the vote does not pass.

Conte assured newspaper La Repubblica on Sunday that his government would not fall over this reform.