Wednesday, March 16, 2016

Visco, the measures of the ECB buying time for politics – Il Sole 24 Ore

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This article was published March 15, 2016 at 15:32 hours.
the last change is the March 15, 2016 at 16:19.

the extraordinary measures launched by the ECB in recent days “are used to buy time,” so that “politics face reforms both on the investment side that giving opportunities businesses to grow and create jobs. ” Said the governor of the Bank of Italy Ignazio Visco at a meeting with students of the school Tasso in Rome (where he received a classical education). The conference of the governor, broadcast live streaming from Horizons TV, has ranged from education to Italian weaknesses, until the subprime crisis and the measures taken by the ECB last week. Present at the conference the Secretary of Education David Pharaoh and the journalist Paolo Mieli.

According to Visco in Europe “there is a political issue for discussion in this regard. Draghi makes monetary policy but does not do it alone, “and the latest moves Frankfurt” serve to buy time because the policy makes the decisions “necessary to restart the economy. “There is a demand problem in Europe – said the governor in the lesson at high school in Rome – while in the world there is not a supply and demand issue, as demonstrated by our exports. And there is a crisis of sovereign debt problem: the question that came to many savers in the world is when some European countries will pay these debts. ” To address the problem would be needed ‘structural reforms and increased spending power, but in Italy it is difficult because the public debt is very high. ”

The governor also spoke about the positive effects of globalization: in terms of “an extraordinary poverty reduction” and increased “in life,” even if “in Italy – said Visco – emphasize the effects negative “that add up” to our weaknesses such as technological sluggishness, and to improve services. ” Over the past 50 years, said the Governor, “the world’s population has doubled to 7.3 billion while in recent years those living in absolute poverty fell to 700milioni.”

it is unlawful if you are sold bonds of 4 banks saved as safe
If “someone has sold subordinated bonds (of 4 banks ed) as a very safe then there has been an unlawful ‘then clarified Ignazio Visco in ‘meeting with students in mind such as subordinated both to the civil code that EU regulations contribute to the losses of a bank. “There is an issue of retroactivity,” he added, but “this is the norm.” And then agginto: “All the scandals in the banking system were pulled out due to inspections by the Bank of Italy. But remember – warned Visco – with watch not prevent bank failures. ”

Then a number of tips to the boys and the invitation: “Invest in yourself above all, read the newspapers and ask around, planted the doubt.” And “you watch movies on Wall Street and the financial crisis.” Chapter banks and depositors. “He who spares should not invest in risky products? No, do not put all your eggs in one basket: you should not buy a single financial product, you must diversify, “it is the invitation of Visco. But the really “important thing” is financial education, said the Governor, and “should be done also targeted to adults: In Italy the level is very low as the level of education,” tout court. Visco OECD cites an old study, “Out of 100 Italian adults 72 are functionally illiterate, that can read and write but do not know how to live in society.”

Students in Visco and Pharaoh pessimistic because you investigated
“I am pessimistic because Dr. Visco is under investigation for corruption, Pharaoh Secretary is under investigation for embezzlement and then Paolo Mieli Tasso know him well because he has led a campaign on its books, the last we received it all. ” So, one of Tasso student, spoke during the lesson of the governor, surprised at the question, smiled and replied quietly, “Let’s clear right away the field from the survey question, there was the request of the pm to archive all because there is none of this. I realize – he added Visco – that one reads the news of the investigation in the papers but then does not find the archive request for newspapers because this is not news. “

The student but breaks a bit ‘to the scheme of the lesson-conference is just the first. He follows another “pessimistic” that does not trust banks, and a student who calls “shameful the Renzi government’s school reform” and blames Pharaoh for coming to rate the instrument to advertise the school-work. Paolo Mieli amused commented: “This is the only school in this country where there may be a morning like this. The only. It’s true, I come often and you sbrodolo praise on the rate, but we gain nothing, and it is great to have with you a lively and open confrontation. You will understand it in 10 years. “



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