(Finance) – “The fight against inflationbecause it does not seriously affect the real economy, it cannot be based only on the implementation of adequate monetary policies”. Thus the governor of the Bank of Italy, Ignatius Visco. “On the return to price stability in the euro area, both the choices of the social partners regarding wages and profit margins, and those of the governments in defining the fiscal policies”, he explained at the forum “Europe and Italy: prosperity in union and in peace” at the French Embassy in Rome.
“There ECB – recalled Visco – is acting firmly in countering the current phase of prolonged price increases. And it will continue to do so until their growth returns to levels consistent with its inflation target of 2 percent, to be achieved in the medium term”. For the governor, “the best answer for the recovery and growth of real incomes is in a balanced development”.
“A challenge as fundamental as those posed by war comes from demographic trends, European and global. European countries are aging rapidly” and “a greater capacity will be needed to welcome and integrate those who come from countries where the population is still growing at a rapid pace, committing us to jointly govern demographic pressures that could become impetuous”, the governor of the Bank of Italy.
To the light demographic curve in the countries of the Union, added the governor, “there is a need to rethink our welfare systems and to counter the negative effects of population aging on development prospects”.
Visco then highlighted the need to “start from the initiatives started with the pandemic and transform them into an organic plan to complete the monetary union. In addition to perfecting theBanking unionwe need to resume the discussion on the possibility of introducing a common budgetary capacity capable of accompanying the monetary policy in the task of making the euro area more resilient”. “This would make it possible – he specified – to reconcile the full exercise of the function of stabilization with the balance of public finances in each country; it would also be possible to jointly finance public services and infrastructures of common interest, to prepare Europe for the difficult challenges we are already facing today”.
According to Visco, “the introduction of a common public debt securitywhich in the future could also replace a part of the national securities in circulation and play the role of safe assets assigned to government bonds in the other main economies, would also serve to speed up the process towards theCapital market unionwhich in turn would facilitate companies’ access to finance”.