Bank of Italy chief says ESM reform is step in right direction

ROME, Dec 4 () – Bank of Italy Governor Ignazio Visco said on Wednesday he was in favour of a contested reform of the euro zone’s bailout fund, adding that it needs to be a first step towards broader euro zone financial integration. “The reform proposal marks a step in the right direction,” Visco told a parliamentary panel. He said the most positive aspect of the reform of the so-called European Stability Mechanism (ESM) was that it introduces a financial backstop to the euro zone’s resolution fund for ailing banks. Reporting by Giuseppe Fonte, writing by Gavin JonesOur Standards:The Thomson Trust Principles.