Italy's Conte Vows To Reject ESM Loans In COVID-19 Crisis At Next EU Meeting

Italy's Conte Vows to Reject ESM Loans in COVID-19 Crisis at Next EU Meeting

Italy will express clearly at the next meeting of the EU leaders that it does not accept loans from the European Stability Mechanism (ESM) as a way to address the coronavirus emergency and support economies, Italian Prime Minister Giuseppe Conte said on Friday

ROME (Pakistan Point News / Sputnik - 10th April, 2020) Italy will express clearly at the next meeting of the EU leaders that it does not accept loans from the European Stability Mechanism (ESM) as a way to address the coronavirus emergency and support economies, Italian Prime Minister Giuseppe Conte said on Friday.

"Italy has not signed any documents to activate ESM, because Italy does not need ESM, because Italy believes ESM is a completely inadequate and insufficient instrument to face this emergency. I will explain this once again at the next European Council meeting, that the ESM is not adequate" Conte said.

The Italian prime minister added that the Eurogroup's proposals on ways to support economies amid the coronavirus pandemic were insufficient.

"Italy sees the Eurogroup's proposals as insufficient. Italy stands for the creation of a fund with real powers proportionate to the resources needed for a 'wartime' economy. Such funds must be available immediately ... Eurobond is the most adequate instrument for us," Conte said.

"I am convinced the Eurobonds is the only way out that can help Europe to restart with strength," the prime minister noted.

Late on Thursday, finance ministers of the EU member states agreed on a package of measures to ensure recovery of the EU economy from the pandemic. They will have to be approved at the next meeting of EU leaders. The package worth 540 billion euros includes a new European Investment Bank program to support enterprises (200 billion euros), the SURE mechanism of the European Commission to fight unemployment (100 billion euros), and a loan instrument worth 240 billion euros from the ESM.

Eurobonds were set aside from the package of measures, though they were Italy's main aspiration. The Netherlands was among the main opponents to the idea of Eurobonds.