EU DIVISION /// Matteo Salvini publicly denounces EU financial plans.


The former Italian interior minister asserted EU loans will be a burden on Italy’s future generations and ignored all EU’s proposals to solve the coronavirus crisis. Matteo Salvini, who directs Lega, maintained Italian Prime Minister Giuseppe Conte should issue treasury bonds to assist Italian taxpayers recover from the economic crisis caused by COVID-19. Speaking to La7, he explained: “Many people ask me’what could you do if you’re in charge?’ , I would ask Italian people the money to allow the country to recover.

“I do not think in steps like the European Stability Mechanism (ESM), that is still discussed in Berlin, Amsterdam and Brussels since it could be a debt imposed on our children.

“It might mean more equity and much more laborious jobs.

“I would employ an extraordinary issue of treasury bonds to Italian citizens, entrepreneurs and investors, ensured by the Government and by the European Central Bank – as it is its function – so the Italian debt to repair streets, build hospitals and new police stations will be in the control of citizens with favorable tax conditions.

“I don’t trust loans coming from Europe, which will then mean – as we have seen in Greece such as -which railings, airports and even monuments will be sold to the maximum bidder.”

The draft text, which was seen by Reuters, said the present ESM precautionary credit lines could be “adjusted in light of the specific challenge” – the spread of the coronavirus – and that countries “requesting assistance would commit to utilize this line to encourage national financing of prices strictly related to the COVID 19 crisis.”

It went on to state: “Afterwards, euro area member countries would strengthen economic and fiscal principles, consistent with the EU economic and fiscal manipulation and surveillance frameworks, for example any versatility applied by the competent EU institutions.”

Officials who participate in the assembly and diplomatic resources briefed on it said Italy was leaning to take this wording on macroeconomic conditionality but the Dutch didn’t believe it went far enough. In the long run, both refused the text.

Diplomatic sources said France was also initially calling for a more specific reference to issuing joint debt, but then got on board with additional, watered-down drafts in an effort to secure an EU compromise.

Germany and Spain were also in favour of such an arrangement, but Austria, Sweden and Denmark sided with the Netherlands, the sources said.

Italy is one of the worst-hit nations on the planet by coronavirus.

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