{"id":426487,"date":"2025-05-12T18:45:10","date_gmt":"2025-05-12T16:45:10","guid":{"rendered":"https:\/\/www.eunews.it\/2025\/05\/12\/europa-italia-no-mes-no-finanzia-difesa\/"},"modified":"2025-05-12T19:35:34","modified_gmt":"2025-05-12T17:35:34","slug":"europe-to-italy-without-a-fully-functioning-esm-defence-cannot-be-funded","status":"publish","type":"post","link":"https:\/\/www.eunews.it\/en\/2025\/05\/12\/europe-to-italy-without-a-fully-functioning-esm-defence-cannot-be-funded\/","title":{"rendered":"Europe to Italy: “Without a fully functioning ESM, defence cannot be funded”"},"content":{"rendered":"

Brussels – The idea of a savings union is undoubtedly useful for financing\u00a0the EU’s policy priorities, namely the double green and digital transition and even more so defence, but it will not be available immediately. So, a real, fully functioning banking union will be needed, with the European Stability Mechanism (ESM) at its best. An impossible situation due to\u00a0Italy’s failure to ratify<\/a>\u00a0it\u00a0puts the entire European Union and its eurozone in an impossible position to respond to the most pressing challenges<\/strong>. The new censure against the government comes from the Single Resolution Committee (SRB – <\/a>Single Resolution<\/a>\u00a0Board<\/a>), the Authority for the restructuring and winding-up of troubled banks and the central body of the banking union project.<\/p>\n

Established in 2015 after the euro crisis, the special agency raised a central theme at Eurogroup meetings:\u00a0stability while awaiting competitiveness.\u00a0A<\/span>\u00a0report<\/a> presented to the economic ministers meeting in Brussels shows how and how much the Italian line affects all partners. “It is clear that the EU will have to mobilise all its untapped resources to address its many challenges,” the premise of the Single Resolution Committee. In this sense, the proposal for a savings union “will be instrumental” and thus an important aid. “However,\u00a0the\u00a0implementation<\/strong><\/span>\u00a0of these projects will take time<\/strong>.<\/span><\/span> In the meantime,\u00a0banks will need to step up and help finance the many strategic investments<\/strong>” that the EU has identified, including supporting the defence industry.<\/span><\/span><\/span><\/p>\n

This is where the ESM\u00a0question arises. As banks have to substitute themselves for a savings union that is not yet there, it becomes “fundamental that the European banking sector becomes more competitive.” This goal “can be achieved by completing the Banking Union.”\u00a0Thus, an ESM\u00a0is needed\u00a0to\u00a0<\/span>provide\u00a0<\/a>money to the Single resolution fund<\/a>, set up to restructure or liquidate troubled banks, according to the reform treaty approved but never ratified by Italy. “<\/span>All countries should urgently ratify the revision of the ESM\u00a0Treaty to establish the European Stability Mechanism’s common support mechanism for the Single Resolution Fund<\/strong>,” the Single Resolution Committee once again insists. “Having adequate sources of funding in the event of a crisis is more important than ever in these volatile times.”<\/span><\/span><\/span><\/p>\n

The ESM has a lending capacity of over \u20ac500 billion and liquidity of \u20ac80 billion as a crisis buffer. Of this, according to Pier Gramegna<\/strong>, executive director of the European Stability Mechanism, \u20ac68 billion can be used to restructure banks in difficulty. “If Italy does not ratify it, the ESM cannot disburse the \u20ac68 billion of the rescue network<\/strong>,” the “backstop” designed to prevent the worst.<\/p>\n","protected":false},"excerpt":{"rendered":"

Single Resolution Board (SRB): “Savings Union takes time, and while waiting, it is up to banks to support priority investments. Everyone should ratify the ESM reform treaty.” Banks responsible for defence support<\/p>\n","protected":false},"author":494,"featured_media":238060,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","jnews-multi-image_gallery":[],"jnews_single_post":{"format":"standard","override":[{"template":"1","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"0","post_reading_time_wpm":"300","post_calculate_word_method":"str_word_count","show_zoom_button":"0","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"1","show_prev_next_post":"1","show_popup_post":"1","number_popup_post":"1","show_author_box":"0","show_post_related":"1","show_inline_post_related":"0"}],"image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post_position":"meta","trending_post_label":"Trending","sponsored_post_label":"Sponsored by","disable_ad":"0","subtitle":""},"jnews_primary_category":[],"jnews_override_counter":{"view_counter_number":"0","share_counter_number":"0","like_counter_number":"0","dislike_counter_number":"0"},"footnotes":""},"categories":[25705,30809],"tags":[26146,25826,25827,25831,25828,25830,25832,26394,31210],"class_list":["post-426487","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-defence-security","tag-union-banking-en","tag-banche-en","tag-esm-en-2","tag-mechanism-european-stability-en","tag-eurozone-en","tag-governo-meloni-en","tag-mes-en","tag-pierre-gramegna-en","tag-committee-unique-resolution-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/posts\/426487","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/users\/494"}],"replies":[{"embeddable":true,"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/comments?post=426487"}],"version-history":[{"count":4,"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/posts\/426487\/revisions"}],"predecessor-version":[{"id":426500,"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/posts\/426487\/revisions\/426500"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/media\/238060"}],"wp:attachment":[{"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/media?parent=426487"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/categories?post=426487"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.eunews.it\/en\/wp-json\/wp\/v2\/tags?post=426487"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}