Padoan: “Europe seen as a problem for the job. Flexibility is not short cut” – The Republic

MILAN – The economic recovery, the role of Europe seen as an obstacle to the labor market, the Italian request for flexibility on government accounts and the central role of the ECB. It ‘sa Pier Carlo Padoan in the round, what we spoke at a conference in the House. “A key element of which there is huge need,” in the Old World, “is the trusted . If there is no mutual trust common tools” We can not built starting by economic and banking , stressed the Minister of Economy.

also because the mistrust towards Brussels remain and are the ones that have caused him to ride many populist waves: “I believe in Europe there is a strong need for strategy growth, which articles in national dimensions consistent. the problem of non-employment is far from being solved. this is the real issue: why Europe is seen not as a solution but as a problem, “said Padoan. One of the tools put in place is the Juncker investment plan, “was born with the idea that in a situation of deep uncertainty private investment is insufficient then you justify public intervention. There have been some steps forward, but it is a classic case in which you can do more. “

Another hot topic, the flexibility of public finances and the impetus to the recovery. “The debate on the Flexibility is a good example of how misunderstandings can be created: incentives recently introduced flexibility are not strumenri for shortcuts fiscal indiscipline but strong incentive tools to do things they serve, public investment “Padoan said.

who is moving for some time is the ECB , which” is doing a very important job that i believe will begin to bear fruit in terms of more growth but also inflation which serves to avoid “risks of deflation. The steps further, also called by Governor Mario Draghi, relate to the risk-sharing, the theme that recalls the only EU deposit insurance: “If we believe the monetary union is a duty of all contribute to the risk-sharing,” said the conference Europe facing the challenges of the future – the role of national parliaments . For Padoan, “banking union but also economic must be based on two principles: the reduction and risk sharing. There are systemic risks that we face together, not as a single country that is cornered.” According to the minister, in a union “if you do not have common instruments who will suffer the inevitable adjustment costs, there will be, will be the labor market, employment will pay. We have to build a tool to mitigate these costs , with a common task. “

Topics:

banking union

EU

flexibility

Starring:

pier carlo Padoan