VILLAGES: THIS IS WHY THE REFORM DE MES IS A GUN POINTED AT THE TEMPY

28 November 20203 years ago babelfish

Given that on Monday the reform of the ESM as a whole will be discussed again in the EuroGroup, it is right to take up, for the umpteenth time, the reasons why this mechanism is a sort of gun aimed at Italy's head.

Let's see the reasons clearly:

the MES is a body outside the Union, private, with over a hundred officials completely immune to the national powers of individual countries, untouchable, but which can be summed up as a private entity, a loan shark with a license to kill;
the reform divides the participating countries into two: the "good" ones that respect the budget constraints of Maastricht and therefore can use it unconditionally to save their banks (as Germany and Holland will have to do …) and the "bad" ones that instead they do not respect the budgetary constraints and therefore obtain loans only on "Enhanced" conditions, ie with the troika ECB, the ESM Commission to monitor the Greek-style "budget policies";
The ESM also judges whether a debt is sustainable or not, if not sustainable before intervening it requires that the commission's deficit indications be followed for 2 years, that the deficit / GDP limit of 3% is respected and that the Debt / Debt ratio is respected. GDP of 60%. This is why any ESM intervention has worse consequences than 100 bank defaults put together.

Even Giampaolo Galli, a former senator from Piddino, speaks of a “gun aimed at Italy's head”, with this reform of the ESM. Despite these statements, the Minister of Economy, Gualtieri, against the parliamentary mandate, will sign the ESM. At that point the M5s will also sign it, the last definitive act of repudiation of his roots and his own electorate.

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The article BORGHI: HERE'S WHY THE REFORM DE MES IS A GUN AIMED AT THE TEMPY comes from ScenariEconomici.it .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/borghi-ecco-perche-la-riforma-de-mes-e-una-pistola-puntata-alla-tempia/ on Sat, 28 Nov 2020 07:36:47 +0000.