“Late, unfortunately late, but decisively even if painfully, the reforms were made in Italy. I consider it a radical and spectacular change“. With these words Peter Praet, member of the executive board of the ECB, he replied to those who asked him how the European Central Bank would evaluate a possible Monti-bis government. On the merits of the matter, Praet did not say too much: "I don't comment on political issues".
On the sidelines of a conference at Bocconi, the Eurotower representative then added that "the important thing for the markets is to perceive the political and social consensus behind the reforms. All reforms require a broad consensus of the population. They have to be understood."
Praet then pointed out that the fundamental problem of having to straighten public finances in Italy "has been recognized and dealt with in the right way by the current government" and the banking system will benefit from this, highly exposed in terms of government bonds.
as to Spain, “it is not a question of bailouts but of 'adjustments' – continued Praet – and the Spanish authorities are doing what they have to do. It's up to them to decide. We are ready to go into action, but the ball is in their court. They have to know what they want to do. It's actually a national decision."
