Italian Prime Minister Giorgia Meloni said the ECB's European Stability Mechanism (ESM) bailout fund has conditions that are "too stringent" and "I fear the fund will never be used".

  • Using the fund would mean a country would see a rise in its bond yields and "a series of disadvantageous things."

Italy is the only EZ century holding off on ratifying ESM reform, aimed at backstopping failing banks in the Union.

More here at Reuters.

Something to keep an eye on in 2023. For now, EUR is gaining above parity.

eurusd italy esm ecb 30 December 2022

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While on Italy, as posted yesterday:

During Meloni's press conference she said Italy has sequenced half of the samples tested in Milan. They all omicron strain of the coronavirus. Meloni said:

  • “This is quite reassuring .... The situation in Italy is under control, and there are no immediate concerns.”