Montevarchi, Italy City Council Approved Text of the Glass-Steagall Motion
January 17, 2014 • 11:28AM

EIR has learned that the City Council of Montevarchi (Arezzo) unanimously approved a Glass-Steagall motion on Dec. 20, 2013. The motion was organized by Movisol activist Leo Magrini and was introduced by Council members Cristina Bucciarelli and Luciano Bucci.

The Montevarchi Act is one among several official acts by local administrations in the Tuscany region, including the Motion voted up by the Regional Council in May 2013, and the Motion voted up by the City Council in Prato one year earlier, in May 2012.

A public event with Movisol speakers last November prepared the ground for the City Council Motion in Montevarchi.

After an introduction on the financial crisis and the bailouts, the 1933 Glass-Steagall Act and its repeal in the U.S.A. and in Italy with the Amato-Draghi legislation in the '90s, the Motion calls on the Italian government "to act so that the ECB is conferred the power of establishing rules to distinguish between financial investments useful to the real economy and those with high risk, connected to financial operations of a speculative nature; only the former must be supported and the second must be used in a specific segment of the financial market, where each and every investor is responsible for the risk undertaken and operational guidelines are forced to follow strict limitations of operations and capital."

It then "asks the national parliament to enact a Law in order to establish a separation between investment banks and commercial banks, instead of financing bank bailouts," and mandates the chairman of the City Council "to send this Act to the President of the Council of Ministers and to the leaders of the parliamentary factions in the Chamber [of Deputies] and in the Senate."