ROME: Italy’s lower house of parliament, including members of Prime Minister Giorgia Meloni’s party, rejected an opposition motion on Thursday to approve a reform of the eurozone’s bailout fund.
However, analysts suggest that Meloni’s hard-right government is likely to reintroduce its proposal for ratification, possibly with certain conditions.
Italy remains the only country that has not yet ratified the 2021 reform of the European Stability Mechanism (ESM), aimed at strengthening the fund’s financial capacity and expanding its authority to supervise countries facing economic challenges.
Meloni’s coalition government faces internal divisions regarding the ESM, balancing suspicion with pressure from EU allies to endorse an agreement requiring approval from all national parliaments. The vote on Thursday pertained to a motion for ratification presented by members of the centre-left opposition Democratic Party.
Analysts anticipate a subsequent initiative from the ruling coalition, possibly introducing a motion with conditions that would necessitate a parliamentary vote for activation.
Meloni’s Brothers of Italy party and Deputy Prime Minister Matteo Salvini’s far-right League party voted against the opposition motion, while the right-wing Forza Italia party, part of the governing coalition, abstained. The motion was rejected with 184 votes against, 72 in favor, and 44 abstentions.
