MILAN– A proposed reform of the euro zone bailout fund (ESM) will not involve automated financial obligation restructuring for having a hard time countries, Germany’s Finance Minister Olaf Scholz informed Italian daily paper La Repubblica.
In an interview published on Saturday, Scholz said the ESM’s task was to support having a hard time countries by lending them cash subject to particular conditions.
“There is not any automatic debt restructuring,” he added.
Italy’s ruling parties failed to reach an arrangement on Friday over the prepared ESM reform, two lawmakers stated, as Rome stresses about the impact the changes could have on the nation’s enormous public financial obligation.
(Reporting by Giulio Piovaccari; Editing by Kirsten Donovan)