Optimistic yes, but up to a certain point. On the last Bank of Italy report “it doesn't say” that any returns on Italian bonds would be sustainable under any conditions. On the other hand, it is not even said - and we hope it will never happen - that our government bonds must necessarily come to have such high interest rates.
These are the clarifications that arrived this morning from the new governor of via Nazionale, Ignazio Visco, about the latest financial studies published by Bank of Italy.
It was a “quantitative exercise based on a very important hypothesis – he explained on arriving at the Governing Council of the ECB in Frankfurt – that all consolidation measures are fully implemented. Aiming for a balanced budget, even rates at 8 per cent are not in conflict with a drop in public debt”. But precisely "it is essential to bring down the debt-GDP ratio", insisted the governor.
