Panetta (Bankitalia): certainty must be given to investors on a downward debt trajectory

Panetta Bankitalia certainty must be given to investors on a

(Finance) – “For 2023 the available information suggests that the deficit and public debt would have decreased in relation to product. In the coming years the debt would be almost stationary, despite the expectation of a decline in the deficit; this is largely due to the use of large construction tax credits accrued in recent years accelerate the consolidation of public finances we need to move along several fronts: prudent management of public finances, aimed at achieving adequate levels of primary surplus, will have to proceed in step with reforms and investments capable of relaunching growth”. Fabio Panetta, Governor of the Bank of Italyduring the annual congress of Assiom Forex, the association of financial market operators, underway in Genoa.

The Italian situation is also part of a context in which economic activity in the euro area has been stagnating for five quarters, affected by the weakness of foreign and domestic demand. “The weakness of the European economy extends to our country”, explained Panetta, reiterating that “to embark on a path of sustained growth we must act along two directions. Investors must be given certainty on one downward trajectory of public debt; the resulting reduction in risk premiums would make the process less arduous. They go stimulated investments capable of increasing innovation and productivity”.

According to the Governor of the Bank of Italy, in recent years I’m anyway”positive signs emerged: the greater accumulation of capital, the strength of the labor market, the competitive capacity of many companies on international markets, the solidity of bank balance sheets. These are significant elements, which can play an important role in relaunching Italy’s development.”

It should also not be forgotten that “the world economy is held back by the monetary restriction underway in several countries and by the uncertainty raised by ongoing conflicts. They are emerging geopolitical fractures globally which, if not addressed, could compromise development prospects, integration between countries and the multilateral architecture that has supported international relations since the Second World War”.

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