Italy’s Messy Coalition Could Delay EU Bailout Fund Reform

Italy’s fractious government may try to delay an agreed-upon plan to overhaul Europe’s bailout fund, throwing efforts to shore up the institutional set-up of the euro area into disarray, Bloomberg News reported. Prime Minister Giuseppe Conte, under pressure from one of his government’s coalition partners, the Five Star Movement, may ask European Union leaders to postpone a final sign-off on the reform at a December 12-13 summit, according to an official familiar with the matter. Conte will link his eventual approval to progress on other issues, such as joint insurance for bank deposits and a common budget, the official said, asking not to be named discussing confidential deliberations. Euro-area finance ministers signed off on a legal text outlining changes to the European Stability Mechanism, the bloc’s bailout fund, in June. Read more