Visco: “Already many reforms but you can do more” – Trentino

TRENTO. “With the deputy minister Zanetti we talked two supervisory hours. If he is not good that should come to me that we’ll talk. ” The governor of the Bank of Italy Ignazio Visco does not hide his irritation when he was pointed out that the Deputy Minister of Economy has just criticized, in another meeting of the Festival of Economics, supervision of the Bank of Italy especially in relation to crack of the four banks saved by the government with an ad hoc decree. We are at the end of the dialogue between the governor of Via Nazionale and his colleague Francois Villeroy de Galhau French on the theme: “A European Finance Minister?”. A question which both governors, pressed by Ferruccio De Bortoli, have responded positively, albeit with different accents. Visco pointed out that “one minister only makes sense if it has powers, duties, and above all funds and its own budget. Otherwise it would only have a role of a notary, as guarantor, not far from what is now the European Commission. ” The debate has had a tone that went from pessimism to realism. Both governors did not hide the many difficulties that hinder the process of European integration. ‘Increasing difficulty, the next is always larger than the previous, “said Visco. The governor also had pessimistic tone when he said that “the level of corruption in Italy has reached unacceptable levels”.

During the debate, Visco also has lambasted the government on the issue of reform. He acknowledged that much has been done, but more is needed: “In Italy, in recent years there is a continuous movement in the change, by simplification of the public administration, which needs to be implemented, the improvements in the labor market, It must function even when the incentives will be eliminated, the competition, which is to ensure cheap operation. There are still missing measures such as those on welfare and a more efficient management of the private pension system. ” The governor also stressed that the pension reform “has made our country the one with the best sustainability”. But there are several things that still do not go: ‘Insufficient public investment at European level and the infrastructure is still lacking. ”

As for the growth is lacking or is insufficient, Visco defended quantitative easing wanted by Mario Draghi: “Monetary policy has a responsibility to maintain price stability and the ECB and the banking system plants try to fulfill this task with our conventional and unconventional policies possible and imaginable efforts. ” But then the governor returned to stimulate the policy: “We ask the counterpart structural reforms because we can not change, productivity growth: all those involved in the real economy, entrepreneurs and those who decide economic policy, must commit to support productivity ».

The governor then rejected the workhorse of grillini, the citizen’s income: “If we gave 500 euro per month for every citizen of the total would be 20% of GDP, and this is impossible and unsustainable financial point of view. ” Then, both governors have worried so spoke the dreaded Brexit, the feared out of Britain by the European Union. Visco is pessimistic and assumes the increase of tensions, “There are forces that will try to follow to follow the example of Great Britain. Forces that will try to stimulate spill temptations such as prospecting to voters the freedom to drop the exchange rate from the euro. ” And therefore the responsibility of political will “overturn the perception of a Europe that only creates problems, strengthening the integration

European.” It’s the same prospect of Francois Villeroy de Galhau, governor of the Bank of France to debate with Visco: if he wins Brexit “there will probably be riots on markets, interest rates, the exchange rate and the central banks will have to restore order ».