Euro-Area Finance Chiefs Urge Italy to Finally Ratify ESM Backstop

  • ESM reform concerns all the member states, Donohoe said
  • Bailout fund issue was discussed at Friday Eurogroup in Spain

Paschal Donohoe

Photographer: Paul Hanna/Bloomberg
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The Eurogroup urged Italy to ratify its European Stability Mechanism bailout fund reform as soon as possible to avoid leaving the euro area without a key form of protection, Eurogroup President Paschal Donohoe said Friday in Santiago de Compostela, Spain.

“This treaty is a backstop and a form of additional support for every other member state,” he said during a press conference, adding that he hoped the Italian parliament will consider this as it deliberates on the ESM. It’s a very important decision that isn’t just about Italy but “also about the other member states.”