exaggerated care, so there is a risk of slowing down growth – Corriere.it

The first who openly takes sides against it is the foreign minister Antonio Tajani. He has more freedom of movement than other members of the government and has no hesitation in rejecting the ECB’s decision: «In my opinion, the Europe of money, I am referring to the ECB, is not moving in the right direction and even if today the beginning of a rethinkin our view is not a good way to deal with inflation.

Tajani says what everyone inside the government thinks. At Palazzo Chigi as well as at the Ministry of the Economy, which in this case are aligned with the considerations that have been made in recent days the governor of Bank of Italy he expressed in public.

In the staff of Economy Minister Giancarlo Giorgetti they don’t make a drama of the umpteenth rate hike, it was an expected movethe considerations with which are certainly appreciated Largarde accompanied the decision, that acknowledgment of the changed financial conditions of the European economy and no longer taking the next increases for granted.

And yet, despite the respect due to the independence of the Central Bank of Frankfurt, the MEF have no problem reiterating the widespread position in our government and more generally in the Italian economic institutional system: «This is largely supply-side inflationfight it only with the rate hike doesn’t convince us, we think it is an erroris an excessive care that risks producing negative effects on growth».

It is a position that is shared by the Bank of Italy: Visco put it on paper, convinced that at this point, after 300 basis points of increases in a few months, which yesterday became 350, the ECB must reconcile, in addition to the numbers of inflation, too financial stability and the possible negative effects on one recovery that is still fragile.

But despite the negative judgment in the government rooms there is no air of great concern. We realize that the step in Frankfurt was announced and therefore almost taken for granted, that inflation core it’s still more than double the targets, given that it cannot be ignored, and it is also consoled “with our economic fabric, our small and medium-sized companies – they still tell the MEF – are more resilient to interest rate increases than large French and German companies, because they are less dependent on the credit”. Or at least not at the level of the large multinationals of the first two economies of the European Union. In short, the concern, if it exists, is of a moderate nature. Also the effects on our public debtwhich has an average life spread over 7 years, and therefore capable of not being affected too much by interest rate fluctuations, come for this considered minimal. Or at least that’s the hope.