The Italian Constitutional Court struck down a norm, introduced by Mario Monti’s technocratic Government, which had frozen the adjustment to inflation of pensions exceeding the minimum threshold multiplied by three. In practical terms, billion of euros will have to be reimbursed.
The European Union warned that the judgement cannot be allowed to imbalance the State budget. Moreover, the Government is struggling to avoid triggering a safeguard clause of the financial legislation which would automatically increase VAT rates.
Meanwhile in India, the convoluted legal proceedings against the Italian marines Salvatore Girone an Massimiliano Latorre are dragging on, and according to the medias the Government decided to settle the controversy via an international arbitration which could be deferred to the Hague Permanent Court of Arbitration, not to be confounded with the UN International Court of Justice which sits in the same city. However India, being a sovereign State, is not compelled to submit to an international arbitration.