Borghi: 'We know little about SAFE funds, they don't seem convenient. We'll convince everyone'

Claudio Borghi, a senator for Italy's League party, has voiced strong reservations about the European Union's proposed SAFE funds, suggesting they may not be in Italy's best interest. Borghi, speaking with Corriere della Sera, clarified that the initial understanding of a finalized decision on the funds was incorrect, characterizing it instead as merely an "expression of interest."

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It was misunderstood. It was misunderstood.

"Why not? If the SAFE is not convenient for us and not useful, I don't understand why we should take even a thousand euros," Borghi stated, emphasizing that Italy's decision should mirror Germany's potential refusal if the funds prove disadvantageous. He pointed to the shifting deadline for acceptance, from May to December 31, as evidence of a lack of clear benefit for participating nations.

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Why not? If the SAFE is not convenient for us and not useful, I don't understand why we should take even a thousand euros.

Borghi detailed his concerns, citing the unknown interest rate and maturity date, as well as the "conditions" attached to the funds. He also highlighted the restrictive nature of the SAFE mechanism, comparing it to a mortgage where the lender dictates the property, noting that the EU requires collaborations with other member states or Ukraine. He dismissed suggestions that this stance was pro-Russian, asserting that the country involved was irrelevant to the core issue of EU oversight and potential European judicial involvement.

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The fact that they moved the deadline is another thing that should make you understand that there isn't all that much convenience.

He anticipates a government communication to parliament, possibly on July 5 alongside budget deficit discussions, allowing lawmakers to deliberate. Borghi expressed confidence that the League would not be divided on the issue, unlike the "progressive Brancaleone army," and that he could persuade his colleagues that the SAFE operation is not advantageous for Italy.

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Beyond the uncertainty of taking out a variable-rate mortgage for so long, there's that with BTPs we are free to do what we want. This, however, is the curious case of the mortgage where the one who issues it chooses which house you have to buy.