Choices
Milan , August 18, 2014 – 7:27
The Minister for the Economy Pier Carlo Padoan asks for time, the economy is going to bother him much worse than expected but said he was confident that the government will be able to implement the necessary reforms requested by Brussels and the markets. In an interview with British radio BBC Radio 4, Padoan recognizes the difficulties of Italy, but also points out that the recovery has stalled in Europe, including Germany. And that is why, he says, that everyone in Europe should do their part to resume growth: governments with structural reforms and investments and the ECB with the necessary measures to put an end to the period of low inflation. The ECB in particular “must be consistent in bringing inflation back near 2%, which is a reasonable figure but far from current levels.” The minister says he is convinced that “more should be done” and quoting without going into detail measurements made on site in Frankfurt – loans aimed at financing granted to companies for securitization and the purchase of securities of public and private – to be added equally convinced that the ECB Mario Draghi “is ready to do more” if necessary.
But it is about reform of the labor market as justice stressed also by the Dragons last week that Padoan means its aiming to get the message across to the investors of the City . “Maybe the path of reform in Italy has not yet been brilliant but the current government is different from the others,” he says, ensuring that the measures are in the pipeline. “We’re working just to make reforms and changes to take effect,” he says, explaining that we must not be impatient. The reforms will drive growth, “but it will take time.” “I’m more than sure that the reforms we are putting in will benefit over the medium term, ie over the next two years,” continued the minister who invites his interlocutor of the BBC to do a test on that date. “Risentiamoci between 18 months and see what happened,” he says. A challenge, in short, not easy given that Italy has to face a new and unexpected contraction of the economy “does not depend on reforms but reflects the problems that have long existed.”
In 2014, “we expect growth much lower than expected,” but “will not change” the program of structural interventions of the government Renzi. “What changes is that the recovery in Italy but also in Europe, it will take longer than expected.” The fact is that “unfortunately, and I say that as an excuse, we’re all wrong. I intend to international organizations, governments, and so forth. All we expected higher growth in the euro zone this year and none so far has been right. ”
Padoan and the government will therefore have to revise the figures though for now, as reiterated yesterday the Economy Undersecretary, Pierpaolo Baretta, “there is no remedy. We exclude the possibility that there is this need. ” And of course, “because things are going well … We are, indeed, very concerned.” But why a move “would further recession in a situation where there is need for investment and recovery.” Precisely for this August 29, the Council of Ministers’ will – said to Rainews Baretta 24 – a new impetus to national economic situation. “
That however – and Padoan has reiterated talking about the British broadcaster – requires a strict comparison with Brussels. On common issues of investment, reform and support for domestic demand and on the flexibility of the constraints of budgets more expensive for Italy and France. The timing of the decisions, however, are not yet ripe. “The state of public finances will be analyzed in the fall,” he explained yesterday, Simon O’Connor, spokesman for EU Commissioner for Economic Affairs, denying an advance of negotiations.
August 18, 2014 | 07:27
© ALL RIGHTS RESERVED
No comments:
Post a Comment