Italy came under renewed pressure on Monday to ratify the reform of the European Stability Mechanism (ESM), as several EU finance ministers raised the issue during the Eurogroup meeting in Brussels.
Italy is the only eurozone country yet to approve the ESM reform, which has been agreed by the other 19 member states. According to sources present at the meeting, many ministers made direct appeals for Italy to move forward with ratification.
European Economy Commissioner Valdis Dombrovskis emphasised the importance of completing the process, saying it was vital for strengthening the euro area’s financial safety net.
Eurogroup President Paschal Donohoe warned that Italy’s financial risks would increase if it continued to block the ratification. “It is important for all member states to finalise this process. Delays can lead to greater uncertainty,” he said.
The reform of the ESM is designed to give the bailout fund a larger role in managing financial crises, including acting as a backstop for the Single Resolution Fund, which supports failing banks. It also strengthens the fund’s ability to assess debt sustainability and impose restructuring plans.
ESM is politically sensitive in Italy
However, the reform remains politically sensitive in Italy, where concerns persist over its impact on national fiscal sovereignty. Some political parties in Rome fear the reformed ESM could force tougher economic conditions on Italy in exchange for support during a crisis.
Italy’s Economy Minister Giancarlo Giorgetti confirmed there are no plans to ratify the reform at this stage. “There is no question at the moment of the Italian parliament ratifying the ESM reform,” he told reporters.
The government has consistently argued that the ESM should evolve into a tool to promote economic growth, not just crisis management. While critics see the current impasse as harmful to Italy’s credibility in Brussels, supporters of the government’s position say it is right to protect the country’s financial autonomy.
Italy’s refusal to ratify is effectively preventing the reform from taking effect, since unanimous approval is required. The delay continues to frustrate EU institutions and other member states, who view the changes as necessary for financial stability across the bloc.
