What will Governor Ignazio Visco say today in his final remarks to the Bank of Italy meeting on the institutional reforms of the Renzi government a few months after the constitutional referendum and a very few days before the administrative elections on Sunday in the main Italian cities?
In last year's assembly, as in other public occasions, Visco already had the opportunity to appreciate the effort of the Renzi government to bring Italy out of the swamp with reforms but it is evident that, in the imminence of political and institutions of the first magnitude, today his words will take on a different meaning. Even with all the prudence of the case, it would be curious if the Bank of Italy did not appreciate not only the reforms of the cooperative banks and the CCBs, awaited for decades and achieved by the current government with the support of Via Nazionale, but also the constitutional reform of the Senate and of Title V which is not perfect, but it is undoubtedly a step forward in simplifying and speeding up the decision-making process of the institutions, in cutting the costs of politics sharply and in the definitive retirement of useless entities such as the Provinces and the Cnel.
But, beyond his judgment on the reforms, it will, as always, be interesting to know the Governor's point of view on the state of the Italian economy and on the recipes for increasing its productivity, as a lever for growth much higher than the too anemic one that still characterizes our country even after the exit from the dark years of the recession.
Of course, Visco's considerations on Italian economic policy cannot ignore a critical judgment on the stammering of Europe which is effectively abandoning the austerity policy but is not yet able to embark on a credible development strategy that goes far beyond the Plan Juncker and that helps to stem, before it's too late, the populism that in various ways circulates and grows in the Old Continent.
On Europe it is legitimate to expect clear words from the Governor also on matters of banking policy and above all on regulation. Visco has already had occasion to point out that without the European guarantee on bank deposits, the European banking union is lame and that, as the president of the ECB Mario Draghi claims, it is time for all the countries that have signed the agreement on the banking union to decided to implement it in all its aspects, referring the problem concerning the weight of government bonds and their effect on the stability of banks to an international and not just a European forum.
But this is not the only issue and it is to be hoped that the respect and gratitude due to the delicacy of President Draghi's action, especially after the unjustified attacks by the German right on his far-sighted monetary policy, do not silence the criticisms of the bizarre and often obtuse European banking supervision and regulation that both the ECB and the European Commission never fail to feed us. Asphyxiating regulation oriented only towards stability rather than development is not good for the banks, it is not good for the economy and it is not good for Europe.
In terms of banking policy, it would also be interesting to know the Governor's point of view on the opportunity to direct the regulation not only in defense of large groups but, as the United States wisely does, also of local banks, lightening often unsustainable burdens and duties. And again, in the age of the Internet and above all of robots and big data, what is the banking model that the Bank of Italy has in mind for the near future and how to dismantle the plethoric network of branches and employees which, together with the non-performing , ballast our banks?
Times are tough. For this reason we expect courageous words from the Governor.
