The Italian government dictates its priorities to the European Union, putting the need to finally complete the continental banking union first.
In the position paper on European policy, the Executive says it has its say on the monetary policy pursued by the ECB which, despite having now implemented expansionary measures, is "insufficient" to support economic growth. According to Italy, the existing budget space "should be fully used to support growth", in a phase in which, despite all the efforts made, inflation remains at exceptionally low levels and the recovery has begun to slow down again. For its part, the European Union needs greater convergence, an acceleration of structural reforms and above all "supporting domestic demand".
On the basis of what is written in the document, Italy proposes to transform the ESM, the European stability mechanism, into a "European Monetary Fund" which makes the most of the margin of action of the system, while maintaining at the same time the functions of protection of the Member States.
Our country gives the green light to the establishment of a Eurozone Finance Superminister, with the task of managing a budget with adequate resources and capable of carrying out a common fiscal policy.
In the nine-page document sent to Brussels, the Government also calls for greater symmetry in macroeconomic adjustments, emphasizing how "an excess of public account surplus is as harmful as an excess of deficit" and insisting that the budget surplus be invested at a support growth by creating a “win-win situation”.
Finally, Palazzo Chigi and the Ministry of the Treasury dwell on what has by now become one of the most important battles that our country intends to fight at a continental level, namely the completion of the banking union and the creation of a European guarantee on deposits which " it would significantly improve the functioning of the Union, guaranteeing more efficiency and financial stability”. But that's not all, because the new "insurance" would also serve to strengthen confidence in the banking sector and reduce risks.
Lastly, the Government insists on common employment policies, asking for the establishment of a "mechanism to mitigate cyclical unemployment and its consequences" while strengthening - at the same time - "the social dimension of Europe". In this sense, the creation of a common fund is proposed as well as the issue of Eurobonds in order to finance the management of continental borders.
