The cabinet has recently approved a draft Bill, which will now go before parliament, enabling the government to adopt the necessary provisions for the replacement of the lira by the Euro.
The Bill sets out a number of provisions for the implementation of the new law and mandates the government to adopt, within six months from the entry into force of the law, one or more Legislative Decrees to implement fully the relevant EU provisions and ensure the smooth and transparent transition from the lira to the Euro.
The government is also empowered to adopt auxiliary and corrective provisions within the first two years from the entry into force of the law to adjust the relevant regulations enacted by Legislative Decree.
Under the provisions of the draft bill the Legislative Decrees to be approved will determine among other things the terms and conditions for the redenomination in Euros of private and public debt and financial instruments. The government, to facilitate re-denomination and the circulation of financial instruments, will have the power to enact any provisions necessary for the dematerialization of financial instruments.
Dematerialization is at present limited to financial instruments held by Montetitoli SpA and to public debt instruments in the central administration of the Bank of Italy. The regulations in the draft bill cover the entire market.