European Central Bank President Christine Lagarde praised Italy’s fiscal progress, but urged the country to finally ratify the European Stability Mechanism bailout fund.

“I have been impressed by the economic development and the management of public finance in this country,” she told Italian public broadcaster Rai1 on Thursday.

Italian Prime Minister Giorgia Meloni has overseen unusual political stability while also maintaining budgetary restraint. Italy’s deficit is on track to fall to the European Union’s 3% ceiling as soon as this year, earlier than previously planned. That’s led to a series of credit-rating upgrades this year including at S&P, Fitch and DBRS.

Speaking in an interview after the ECB’s rate decision in Florence — this year’s choice for the one policy meeting a year held away from Frankfurt — she was also questioned about Italy’s holdout position on ratifying the ESM, which she termed a “problem.”

“I think the full capacity of the European Stability Mechanism is a priority,” Lagarde said. “It is not necessary now, and maybe it’ll never be necessary, but in case it becomes necessary either as a stopgap or as an instrument in order to assist a country that is going through a difficult transition, it should be available and I’m certainly welcome if Italy was to ratify it.”

Lawmakers from Meloni’s far-right Brothers of Italy party, as well as coalition partner the League, have in the past voted against ratification of the reform of the ESM, which has been a politically toxic issue in Italy for years. It’s already been approved by the other 19 euro-area countries, and Bulgaria — which is set to join the single currency in January — will become the 20th to ratify, ESM chief Pierre Gramegna said in an interview this month.