"It is not true that the 7% yield on government bonds is a point of no return for Italy". To say it is the general manager of Bankitalia Fabrizio Saccomanni. In a press conference in Paris, he explained that it would take several years for the high yields to affect the average interest rate Italy pays on its debt.
The number two in via Nazionale then spoke about the current state of European banks and the work of the ECB. For Saccomanni, one of the main causes of the lack of liquidity of European credit institutions is the withdrawal of US funds from the money market. A possible solution to this problem would be to widen collateral ranges to access ECB liquidity.
Saccomanni also specified that the austerity measures, rather than causing a recession, would push growth through a reduction in interest rates in all sectors of the economy. While, according to the economist, the ECB's purchase of sovereign bonds on the secondary market would aim to restore the balance between supply and demand and not to reduce rates of return.
