"L 'Italy has overcome the third very serious crisis (Ed. due to pandemic and war but also the energy shock following the Russian aggression in Ukraine) better than we expected” but il debt audience remains high and the PNRR it is a challenge that cannot be lost both with investments and with reforms. The final considerations of the Governor of the can be summarized as follows Bank of Italy, Ignatius Visco expressed this morning in the Annual Report which will be the last after a 12-year mandate which will end in November.
Visco: a joint effort against inflation by the government, companies and trade unions is needed
Although the uncertainties remain high, Visco acknowledged that, despite the many black swans that have characterized the last few years, the Italian economy has gone beyond forecasts with growth of over 10% in the two-year period 2021-2 of the Draghi Government and with an estimate of growth of the order of 1% for the current year. "In dealing with the consequences of the war in Ukraine as well as in overcoming the pandemic, the Italian economy - the Governor immediately stated - has shown a comforting ability to react" and "encouraging signs that need to be strengthened" are emerging from the country and that after a long period of stagnation they have even seen an improvement in productivity as well as a reduction in inflation. Industry has restructured, construction has taken off, services are improving and banks they are in a good state of health also due to the increase in the ECB's axes which has made it possible to improve interest margins.
Today, however, a joint effort between businesses, trade unions and the government is needed to significantly lower inflation, which will be greatly influenced by a balanced monetary policy that curbs prices but does not cause a recession. Then there is the great Italian bet on which the whole country must commit itself without allowing itself to be seduced by "protectionist policies". And the bet is very clear: how to reduce the public debt without choking the recovery. On this, Governor Visco has fully embraced the Draghi theorem which allowed the previous government to achieve extraordinary results and to leave a legacy not to be lost to the government in office: not penalizing one-way austerity policies but raising growth, based on increase in productivity, to reduce the debt-to-GDP ratio.
Visco: the PNRR is an opportunity not to be wasted
To win the Italian bet – Visco insisted – the PNRR has a unique opportunity but it shouldn't be wasted. "Improvements in the PNRR are possible but there is no time to lose" considering that "the Plan represents a rare, and on the whole valid, attempt to define a strategic vision for the country". But also for this reason - is the very clear conclusion of Visco - "in addition to investments and other spending interventions, it is crucial to implement the ambitious reform program, which has been awaited for too long, contained in it".
A polite but peremptory warning in substance that the last Final Considerations of Governor Visco entrust to the Meloni Government.
