C4 A13: Government’s proposal for Regulation 2024/XX/EF laying down the general framework addressing the macroeconomic and financial situation in Italy and the Federation

HAVE ADOPTED THE FOLLOWING REGULATION:

CHAPTER 1 - GENERAL PROVISIONS

Article 1: Object

The present Regulation lays down immediate action to solve the issues caused by
Italy’s state of bankruptcy, and the protest waves all over the Federation’s
territory.

Article 2: Definitions

For the purposes of this Regulation:

1. Savings - Refers to the amount of money owned by private individuals, and
   used by an investment asset by private banks.

2. Revitalisation - Refers to the policy of ensuring the economic and social
   resilience of a territory after suffering a major blowfinancial damage.

3. Ledger - A book or other scheme for keeping accountingrecords.

Lender of Last resort - Refers to an institution, typically a central bank, that provides emergency liquidity to financial institutions facing temporary financial difficulties or liquidity shortages and that finds itself unable to obtain sufficient liquidity in the interbank lending market.

CHAPTER 2 - ON THE DEBT TAKE-OVER

Article 3: Towards a Federated public debt for the Federated
States

The Federation should, in the long run, become the sole owner of all existing
national public debt of the Federated States. In accordance with Article 51.2 of
the European Youth Convention, the Federation shall take-over the existing
national public debts in order to reimburse them.The Federation shall become the sole owner of all existing national public debt of the Federated States. The Federation is authorized to take over the existing national public debts of any Member State(s) facing a crisis, as outlined in articles 6.1 to 6.5 of Regulation 2024/02 pertaining to the Federal Budget, in order to provide reimbursement.

Article 4: Transition period

A transitional period shall commence in the month subsequent to the enactment of
this directive. The procedures outlined herein shall be uniformly applied
throughout the entirety of the transitional period:

• Upon the expiration of each national bond, the Federal Treasury Agency
  shall issue a corresponding new bond to settle the national bond, thereby
  transferring the associated liability to the Federal ledger;

• In times of crisis for a single member state, the national debt of said state shall be shared at the federal level. The issuance of federal bonds will ensure the mitigation of both the financial burden of the member state in question and the risk ratings of bonds it will have to reimburse. The latter will be implemented to ensure the economic stability of the federation. Any member state that refuses to participate in said obligations and thus disregards the principle of solidarity (stated in articles 2, 6 and 45 of the European commission) will thereby be subject to both economic and political sanctions;

• Federated States may request a grant from the Federal Treasury Agency
  during the transitional period, provided that their annual budget exhibits
  a deficit;

• The aforementioned procedures shall terminate upon the complete transfer
  of all debts owed by Federated States which are facing the crisis to the Federal ledger.

Article 5: Funding

The Federal debt mechanism is funded through indirect contribution from European
household's savings. The Federal Treasury Agency shall ensure the repayment of
its financial assets by securing them on household’s savings located on saving
bank accounts located on the European Federation’s territory.

CHAPTER 3 - ON THE REVITALISATION OF DEPRESSED
AREAS

Article 6 : Federal framework for employment regeneration in
stricken areas (FFERSA)

The Federated Government shall propose and enforce a plan to regenerate
employment in areas struck by economic and social blasts, with the objective of
saving employment.

Article 7 : General provisions for enforcement of the FFERSA

Whenever a local authority equivalent to NUTS 2 notifies the services of the
Federal government of a major economic blast reasonably threatening employment
in a specific area, the Government shall propose to the local government, to the
House of European Citizens and to the European Senate a plan based on the
Federal framework for employment regeneration in stricken areas (FFERSA).

Article 8 : Financial resources and implementation

The FFERSA shall be funded by extraordinary bonds issued by the Federal
government, according to Article 51-2 of the European Youth Convention. The
total amount of this bond shall be allocated to financing recovery in the
stricken area, via funding local plans (proposed by NUTS 2) for safeguarding
employment.

The bond shall be issued within a time period of less than two months, allocated
to the NUTS 2-lead project in the following month, and eventually be spent in
less than 5 months after the economic backlash.

CHAPTER 4 - ON THE RIGHT TO PROTEST IN THE
FEDERATION

Article 9: Right to Peaceful Protest

Every citizen shall have the right to peaceful assembly and protest, provided
that such protest does not infringe upon the rights and freedoms of others or
compromise national security.

The Government shall take appropriate and proportionate measures to ensure the
rights and freedoms of others as well as national security.

Article 10: Responsibility and Accountability

While the right to protest is recognized, it is incumbent upon the protesters to
ensure their actions remain within the bounds of law and order. Any act of
violence, vandalism, or public disorder shall not be tolerated and will be
subject to legal penalties.

Article 11: Permit for Large Gatherings

For protests involving a significant number of participants, a permit must be
obtained from local authorities. This is to ensure public safety and order, and
not to restrict the right to protest. The process for obtaining such a permit
should be transparent, non-discriminatory, and expedient.

CHAPTER 5 - IMPLEMENTATION

Article 12: Entry into force and application

1. The present Regulation shall enter into force immediately following its
   publication in the Official Journal of the European Federation.

2. The Government shall be allowed to adopt any decree or implementing act
   related to the implementation of the technical aspects of the present
   Regulation.

3. It shall apply from [Day][Month][Year]

The present Regulation shall be binding in its entirety and directly applicable
to the European Government and in all Member States.

For the European Parliament

The President

For the European Senate

The President