Bank of Italy, the 10 points of Visco – ANSA.it

Here are the main points raised by the governor of the Bank of Italy Ignazio Visco in the final considerations.

Recovery
“The recovery started in our country in the first quarter of this year it should be consolidated in the current year and the next. “
There is a risk that the economic recovery is not enough, especially in the South, to increase employment as is in the past the exit of downturns. Visco said that the need to support the activities in sectors with high labor input. More public and private investment should be allocated, stresses, to create new developments for land conservation and enhancement of cultural heritage.

Reforms
In Italy ” action has been taken to reform, internationally recognized ” said Visco. ” In order not to disappoint the expectations of change necessary to broaden the spectrum and speed up its implementation. In some cases the benefits are not immediate but this is one more reason to act, with a design and coherent ”.
Positive Rating governor on the reform of the banks, which ” will facilitate the efficient functioning of credit intermediaries in a market made more competitive by the bank ”. Bcc on the Governor asks the launch rapid dell’autoriforma with forms of integration based on belonging to banking groups ”.

Jobs Act
The judgment on the effects of the Jobs Act is still “premature” but is positive the increase in permanent hiring in the first months of 2015 also boosted by the substantial tax cuts. ” The recent reform measures of the labor market – he says – have extended the mechanisms of income support for the unemployed and for new contracts reduced the disincentive to open-ended contracts connected with the uncertainty on the outcome of the resolution of labor relations . A full assessment of the effects of these measures is premature. The employment trend still reflects weak demand and large margins of spare capacity ”. The strong expansion of the open-ended contracts in early 2015 – he continues – ” favored by substantial tax cuts in effect, is a positive signal. Suggests that the consolidation of the recovery employment will grow and move towards more stable forms ”.

Accommodation
Thanks to the interventions of the reform of the public pension system , more than in other European countries, the long-term sustainability of public finance can be guaranteed.

Greece
“The worsening of the Greek crisis has had limited impact so far premiums for sovereign risk in the rest of the area “, nevertheless the Greek difficulties in defining and implementing reforms” fueling tensions potentially serious destabilizing “.
” ii In the interest of all countries of the euro area crisis (Greek) needs to be managed “, said the Bank of Italy governor.

Bad bank
The governor of the Bank of Italy hopes’ ‘a discussion with the authorities in the EU rapid and constructive’ ‘on the issue of bad bank to which’ ‘propose initiatives for some time’ ‘in collaboration with the government.

Enterprise
“The activity is innovative in Italy less intense than in other major advanced countries, especially in the private sector. ” Visco stressed that “the delay, particularly large compared to Germany, is pronounced in industries with higher technological content”.
” The renewal of the administration, started some years ago and that the Government has set itself the objective , it is also the condition for implementing the review processes of public spending and enhanced in safeguarding the quality of services ”. So the Bank of Italy governor Visco adding that the PA is back in the international comparison and that weighs on businesses an overload of bureaucracy.

School
In Italy there is ” a delay both in education levels both in functional skills. To improve teaching programs – said the Bank of Italy governor Visco – increase the quality and direct resources where they are most needed is not possible without a thorough and systemic evaluation of services offered ”.

EU
” In the debate between countries sometimes difficult and tense, you better listen to those shows do well at home, to honor its commitments ”. ” Whether this too, says the Bank of Italy governor, an incentive to consolidate and extend the progress made in Italy, as is the common way in Europe ”.

QE
The possible risks arising from QE ECB ” should be carefully considered but not overvalued ”. The Visco says that without ” we were getting to greater risks, of both real and financial ntura ”. At low rates also there are ” so far signals ” of generalized imbalances ”.