The ESM? It wouldn’t even be enough to save Deutsche Bank. The professor speaks. Eat (Catholic)
This is how Alessandro Mangia, professor of constitutional law at the Catholic University of Milan, commented on Parliament's no to the ratification of the changes to the ESM
Stop the ESM: chapter closed. The dossier should have been postponed to January, but instead the Chamber accelerated and decided quickly. And he rejected the ratification of the Reform Treaty. The decision to vote by Christmas shows that the differences between the majority parties were and are there, but they turned out to be overcome: Forza Italia abstained, Lega and FdI voted against. Added to their votes were those of M5s, for a total of 184 votes against ratification, 72 in favor (Pd, Action, IV, +Europa) and 44 abstentions (Alleanza Verdi e Sinistra, Forza Italia and Noi moderates).
Here is the opinion of Alessandro Mangia, professor of constitutional law at the Catholic University of Milan, who began to deal with the State-saving Fund in 2012, in a conversation with Il Sussidiario.
After the news, lo and behold, the Italian spread did not rise, as some interested prophets of doom predicted, but fell. A sign that this vote sent a clear message to the international markets, which seem to have accepted it.
Indeed. The most relevant data is the political one. It is a No which will plausibly start a process of rethinking that curious little hybrid animal that is the ESM. Do you remember Giampaolo Galli's audition in September 2019?
I believe that Europe – a certain Europe – has been done a favor with this vote. And from today onwards we will be able to begin to think about new foundations for this institutional ruin. And maybe we will be able to transform it into something useful.
In reality, Europe is interested in little or nothing about the ESM. But it is of great interest to certain parts of Italian politics which are calling for foreign interventions to address the issue. And they are interested not today, because the European side is what supports these forces. The local German coffers are of little interest, but they have the weight they have. It is said that it is of interest due to the not so rosy situation of Deutsche Bank, but this is not a very credible statement.
Because if Deutsche Bank collapses, the ESM is not sufficiently capitalized to intervene effectively. It all comes down. And then the ECB would have to act as the central bank. That's right: Europe is the only part of the world that does not have a Central Bank, that is, a bank that guarantees unlimited savings to savers and the banking system.
It would be enough to explain – as Lidia Undiemi and Giuseppe Liturri did well at the "a/symmetrie" conference in Pescara two weeks ago – that the average salary, at the ESM, from the usher to the general director, is 280 thousand euros. Nothing but controversy over the cost of parliamentarians.
It would then be enough to explain that in times of rates at 4.5%, in which all financial institutions have made profits like never before in recent years, ESM officials have managed to make a loss in managing their portfolio. Can you find me another institution that can function without responsibility and without controls that are not "internal"? That is, non-controls? Without responsibility and controls, what incentive does a financial institution have to operate? A normal financial institution must account for its management to its shareholders, while the ESM is not accountable to anyone. And the money he lost while sleeping is our money. This, if we think about it, is sensational.
Extract from an article published on ilsubsidiario.net
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/il-mes-non-basterebbe-manco-a-salvare-deutsche-bank-parla-il-prof-mangia-cattolica/ on Sat, 23 Dec 2023 07:02:46 +0000.