Paolo Savona returns to talk about the euro in the context of a speech before the EU commissions of the Chamber and Senate on the programmatic lines of his ministry. The Minister of European Affairs referred to the controversies surrounding his appointment as Economy Minister - then shelved after the No of the President of the Republic - and his positions on the single currency. “They tell me do you want to leave the euro? Be aware that we may find ourselves in situations where others decide. My position is to be prepared for any eventuality”. "One of my homes, the Bank of Italy - continued Savona - taught me to be ready not to face normality but the black swan, the extraordinary shock".
In a nutshell, even if the exit is not voluntary, Italy should still prepare for the eventual farewell to the euro. A precaution in case the "extraordinary event" arrives. Also because according to the head of European affairs, there is a need for "a close connection between the EU's institutional architecture and growth policies if the euro is to survive".
Then an announcement that surprised the parliamentarians: “I will go to Draghi as soon as this meeting is over”. The purpose is to have a face to face with the Governor of the European Central Bank. When? “In the next few days, if you receive me”.
During his speech in parliament, Savona spoke of the need to implement the powers of the Eurotower in order to safeguard the single currency: "If the ECB is not entrusted full duties on the exchange every action outside the eurozone has repercussions on the euro without the European Union having the tools to conduct direct counteraction”. And “the absence of full powers of the ECB on the exchange rate – he added – causes a situation in which the growth of the eurozone economy is influenced, if not determined, by choices or events that take place outside Europe”. Not only that, according to the EU affairs minister, the ECB should also have "full and autonomous exercise of lender of last resort. It is a gap that is reflected in the spread”.
In summary, for Savona: "the ECB must be given a statute similar to that of the world's main central banks, where the objectives of stability and growth are integrated and the instruments are as broad as possible and can be exercised in full autonomy".
Passing from Europe to Italy's internal politics, the minister then referred to the spread. It should be recalled that the differential soared precisely during the government crisis, from the publication of the first draft of the government contract containing measures to exit the euro up to the possible appointment of Savona as minister of the economy which frightened the markets due of its positions on the single currency.
“The spread remains high because traders are waiting to know how the government intends to implement the measures promised to the electorate, especially basic income, flat tax and revision of the Fornero law. The market's concern is that relative spending causes the budget deficit to increase, but right or wrong, government policy must take this into account.
Savona then pointed out that "the declarations made at the highest levels that Italy does not intend to leave the euro and respect its fiscal commitments have reassured the market, but the spread is not going down because our public debt remains exposed to speculative attacks”.
