We must “preserve the shared rules that underpin global prosperity.” He states Fabio panetta, governor of Bank of Italy, at the inauguration of the 58th Annual Meeting of the Board of Governors of the Asian Development Bank (ADB), which is being held for the first time in our country, in Milan.
“Geopolitical tensions are of great concern to the ECB,” the Bankitalia chief underlined, “as are trade barriers.” In this context, he added, “preserving economic integration and strengthening international cooperation is essential.”
A World Under Pressure: Peace, Cooperation and Openness
The theme of the annual meeting – “Sharing experiences, building tomorrow” – was the focus of Panetta's speech, which highlighted the successes achieved by the Asian economies and the role ofEurope in the process of regional integration. “In Asia and the Pacific, significant progress in poverty reduction has been achieved through increased participation in international trade and a progressive climb up the value-added ladder within global value chains,” he explained. “The region contributed about 60% of global growth in 2024.”
Looking at Europe, Panetta recalled that “it has made great progress over the years in regional integration, in the development of the welfare state, in the adoption of common regulatory standards and in the construction of cross-border infrastructure – including the payments sector, which is essential for trade, growth and financial inclusion”.
Against the return of protectionism
But global balances, he warned, are today threatened: “In a time of rising geopolitical tensions and conflicts, we must guard against dangerous backtracking that could undermine the hard-won gains of recent decades. medium-high pace the basis remains indispensable for progress".
“Modern economies are deeply interconnected, and openness to trade has benefited both advanced and developing countries, reducing inequality and lifting hundreds of millions of people out of extreme poverty.” The governor expressed clear concern about the return to protectionism: “Protectionism threatens to undo these gains and weaken the very fabric of global prosperity.”
Technology and Trade: The Key Role of Asia-Pacific
Focusing on the centrality of the Asia-Pacific region, Via Nazionale's number one said: “The solid growth in electronics exports last year reflects its ability to capitalize on growing demand, driven by artificial intelligence, supported by its dominant 75% share of global semiconductor production.”
A dynamism that also affects Europe, deeply tied to foreign demand: "The prosperity of both regions is deeply tied to global trade flows and a predictable international environment".
Tariffs and uncertainty, key variables for monetary policy
On the front of the monetary policy, Panetta clarified: “The trade barriers and rising uncertainty are key variables that we need to carefully assess when formulating monetary policy in the euro area.”
Faced with these challenges, the role of multilateral institutions is essential: “Preserving theeconomic integration and strengthening international cooperation are not options – they are essential. The ADB is a pillar of the multilateral system. With its deep development expertise, strong capital base and broad membership, it brings together regional and non-regional partners united by shared development goals and a commitment to inclusive growth.”
Panetta finally recalled the historic link between Italy and Asia, evoking the figure of Marco Polo: “It was my will to find out,” he wrote, “and the will was stronger than fear.” And he concluded with a wish: “We too, today, continue to choose cooperation over conflict, openness over barriers, and courage over hesitation – because the future we are building requires nothing less.”
