Italian Finance Minister Giancarlo Giorgetti fears that monetary policy measures alone will not be able to contain inflation. He appeals to the ECB: “Recession shouldn’t be the price to pay for fighting inflation”. The Bloomberg news agency reported it on Saturday.
Rising energy costs and raging inflation: Governments across Europe have taken a variety of measures to keep the cost of living affordable. Companies would also be protected in this way. Italy, on the other hand, takes the cake and has spent more than 90 billion euros. This while the ECB and the European Commission have repeatedly stated that this aid should be temporary, targeted and timely. The country is slowly starting to phase out this support, but the ECB’s interest rate policy means the country is in difficult waters.
The ECB is in the midst of its fastest-ever tightening cycle. Since July, interest rates have been raised by 350 basis points to ease price pressures. This aggressive move has prompted some in Italy to criticize the central bank. Giorgetti is more nuanced, but he is also critical of the ECB’s interest rate policy.
Credit Suisse
In a speech on Saturday, he spoke about the recent turmoil in financial markets, including the collapse of the SVB and the takeover of Credit Suisse. “Central bank autonomy must be respected, but policies must aim both at controlling inflation and at maintaining financial stability,” she said. According to him, a recession must be avoided at all costs. Bloomberg reports it on Saturday.
Source: BNR
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