Inflation is “declining rapidly” making a rate cut “possible.” Thus the Governor of the Bank of Italy Fabio Panetta and member of the Board of Directors of the ECB during a speech in memory of the 150th anniversary of the birth of Luigi Einaudi. Panetta recalls what he has already stated at Forex on the trend of inflation and its approach to the target of 2 percent. For a rate cut, he adds, “is the consensus that is emerging especially in recent weeks within the ECB’s Governing Council”.
«Debt reduction must be credible, gradual and constant»
The reduction of the “high public debt” must be implemented with “the Einaudi principle of aiming, with the necessary flexibility, towards a lasting rebalancing of the public accounts”. So again the governor of the Bank of Italy. «This requires both short and medium-term planning of spending and measures capable of ensuring a gradual but constant reduction of the debt over time». A credible reduction path “will increase the room for maneuver for fiscal interventions of a social nature and to deal with future unforeseen situations”. Panetta recalls some of Einaudi’s “still relevant” teachings. «Encourage competition without excesses; prudently manage public finances, working to stimulate growth and reduce debt; preserve monetary stability; move the concept of sovereignty from the national level in favor of a stronger, more open and supportive Europe that counts in the world”.
«Stabilize prices without unnecessary damage to the economy»
«The ultimate objective of the European Central Bank can only be the same» as that implemented in the post-war period by the Bank of Italy led by Luigi Einaudi, «to regain price stability without unnecessary damage to the real economy». The governor of the Bank of Italy Fabio Panetta said this.
Praise to Einaudi on cooperation against the myth of sovereignty
The governor of the Bank of Italy Fabio Panetta praises the “foresight” of Luigi Einaudi and his belief in “a federation to which the member states confer, in their interest, binding powers”, “where he contrasts the myth of absolute sovereignty with the necessity of cooperation imposed by growing interdependence”. Speaking at the conference to celebrate the 150th anniversary of the birth of the economist, central banker and politician, Panetta underlines how «he would probably have supported the Economic and Monetary Union project. The same Ventotene Manifesto which marked the path towards European integration was also inspired, according to its first drafter Altiero Spinelli, by Einaudi’s writings – in particular, by the letters published under the pseudonym of Junius in the “Corriere della sera” in close to the end of the First World War where he wrote “The truth is the constraint, not the sovereignty of the states. The truth is the interdependence of free peoples, not their absolute independence.”
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2024-03-25 14:31:46