A new era begins at the Bank of Italy. After 12 years at the helm of Via Nazionale, Ignazio Visco leaves the helm to Fabio Panetta, whose role at the helm of the national central bank officially begins today, Wednesday 1 November.
Panetta therefore returns to what has been his home for over thirty years. To him, what those who know him describe him as “a pragmatic politician”, will have the arduous task of guiding the Bank of Italy in a very difficult financial, economic and geopolitical context, while simultaneously safeguarding the independence of the institution from the traditional incursion attempts of politics and indicating the new way forward. Whether in continuity or discontinuity with the past (and which past) remains to be seen.
Carlo Azeglio Ciampi, Antonio Fazio (of whom he was considered very loyal), Mario Draghi and Ignazio Visco are in fact the four governors to whom the career of Fabio Panetta is linked, who joined the Bank of Italy at just 26 years old and left through the main door just to sit on the board of the European Central Bank.
Now, Panetta returns to via Nazionale and he does so from the front door to hold the office of Governor.
Who is Fabio Panetta, the new Governor of the Bank of Italy
Sixty-four years old, Roman, Fabio Panetta graduated in Economics and Commerce from Luiss in 82 and then obtained a Master of Science in Monetary Economics from the London School of Economics and a PhD in Economics and Finance from the London Business School.
Soon after, It's 1985, Panetta begins working within the Bank of Italy. At the time the Governor was Carlo Azeglio Ciampi and his first role was in the monetary and financial direction of the Bank, of which he became head in 1999.
Another leap comes in 2007, when it becomes head of the economic and monetary policy studies service, role which he held until 2011. In the meantime, there have been successions in the Governor's chair Fazio, Draghi and Visco. He is a close collaborator of the former, his sherpa at ECB meetings, a position he also holds with Madrio Draghi.
In 2011 Panetta was appointed central director for the coordination of the participation of the Bank of Italy in the'Eurosystem, and from 2010 to 2012 he was also responsible for the Financial Stability Report.
From 8 October 2012 to 9 May 2019, under Visco, he held the position of Vice General Manager of the Bank of Italy and in the meantime holds positions and represents Via Nazionale in various international institutions such as the OECD, the International Monetary Fund, the ECB and the Bank for International Settlements.
The rise to the top of Bankitalia continues in 2019, when between May and December, appointed by Visco, he holds the role of direttore generale, the second most important position in the bank.
After just six months, in January 2020 he flew from Rome to Frankfurt, becoming member of the Executive Board of the European Central Bank, a position he leaves to return to Bank of Italy.
Last year his name was circulated at the time of the formation of the Meloni government as possible Minister of Economy. Panetta, however, refused, perhaps due to his desire to aim for the leadership of the Bank of Italy, destined to be freed with the end of Visco's mandate, which expired on 31 October this year.
He is also the author of numerous studies in financial and monetary economics which have appeared in international scientific journals, such as The American Economic Review, European Economic Review, The Journal of Finance, Journal of Money, Credit and Banking, Journal of Banking and Finance, Economic Notes, Moneta and Credito, Journal of Economists.
Fabio Panetta at the ECB
An expert in banking and finance, at the ECB Panetta deals in particular with thedigital euro, which has entered its second phase of development and which he defined as a "necessary step for the future of the monetary system" and as a benefit "for both businesses and citizens". On Tuesday, while greeting his colleagues on the board, in his greeting to colleagues he spoke precisely about the digital euro, underlining the need to "provide citizens with a secure and easily accessible alternative, which makes cross-border payments cheaper, faster and more transparent".
He, together with Visco, also had the arduous task of dto fight against “the hawks” of the European Central Bank in this period of interest rate increases aimed at trying to bring inflation back below the 2% target. The dove Panetta has repeatedly invited her colleagues to "prudence", focusing on “persistence” of rates at current levels rather than on a continuous increase.
Fabio Panetta, the first choice: the appointment of the deputy general director
The first decision that Panetta will be called upon to make will concern the appointment of the deputy general director who will succeed Piero Cipollone, who will in turn be called to replace the new governor of Bank of Italy on the executive committee of the ECB.
The appointment is decided by the Superior Council on the proposal of the governor, and is subject to the approval of the head of state following a resolution of the Council of Ministers.
The choice should arrive as early as November and according to rumors there would be heavy hitters of the same caliber in the running by Sergio Nicoletti Altimari, current number one in the Economics and Statistics department, Luigi Cannari, head of Payment Systems, Magda Bianco, head of the Customer Protection and Anti-Money Laundering Service of Banking and Financial Supervision and Luca Trequattrini, long-time head of the directorate's cabinet and general officer and responsible for ethics and corruption prevention at the Bank of Italy.
