Visco: “More limited margins for interventions to support businesses and families”. Giorgetti: “We will keep commitments on debt and deficit”

ROME – The “complete and without delay” implementation of the NRRR “can result in a significant strengthening of the growth potential of our economy. Provided that the” tax “of inflation does not push us” to repeat the mistakes of forty and more years ago, ” when the persistence of inflation due to the vain chase between prices and wages was associated with many years of excessive deficits, with the ultimate consequence of the financial and currency crisis which is now celebrating its 30th anniversary “. Bank of Italy Ignazio Visco comes to World Savings Day 2022which Acri, the association of Foundations and Savings Banks, is celebrating this morning in Rome at the Auditorium della Tecnica, in a “climate of uncertainty”, as the President of the Republic emphasizes in his message Sergio Mattarella.

The Pnrr also talks about the fundamental role of the NRP in his speech Economy Minister Giancarlo Giorgetti: “These huge resources will make it possible to promote the ecological and digital transition, relaunch growth and relaunch social, territorial, generational and gender inclusion”, he says, recalling that “if the device for recovery and resilience is the first proof of European awareness of an urgent reaction in the face of the economic damage of the pandemic, it must not be forgotten that a wide debate is underway on the Stability and Growth Pact: it is hoped that a proposal by the EU Commission on the revision of the budget rules will be adopted “.

Giorgetti reiterates that “the new government is oriented to confirm its commitments in the coming years, to reduce the public administration deficit and the debt / GDP ratio. But it is also convinced of the urgency to protect families, especially the weakest, from the rise of the bill and the increase in the shopping cart, to defend the competitiveness of our companies, also in light of the huge support measures announced by other European countries and beyond “.

Aspect also underlined by the president of Acri Francesco Profumo “Today the social lift works only downhill. 42% of poor people have seen their situation worsen compared to that of their parents. The Italians seem disheartened and no longer able to get up. Hope seems eroded.” And those who have the financial availability are careful in this critical moment from investing their savings to restart the country, and prefer to leave them in the current account, as emerged from the Ipsos survey presented by Acri on Friday: “In Italy, as soon as the 5% of household savings are invested in our country, against 14% in Germany and 34% in France “, recalls Profumo, underlining how the sharp reduction in local branches has contributed to this situation. On the other hand, with an adequate policy, Italian savings could become “the answer to the structural uncertainty of our times”.

“The budget law must also be an opportunity to better protect savings – reiterates the president of theAbi Antonio Patuelli – as well as to limit the public debt which must not grow indefinitely, also not to compromise the complex financial balances and the savings of the Italians themselves “.

Istat, inflation leap in October: + 11.9%, at the top since 1984. The shopping cart accelerates again

October 28, 2022

Also because, Visco recalls, “following the necessary normalization of monetary conditions, the cost of servicing the debt is destined to rise. This makes it even more important to outline a realistic path to continue the phase of gradual recovery from the high levels of public debt. in relation to the GDP started in the last two years “. “It would be a decisive signal of credibility for the markets – underlines the governor – which would translate into lower sovereign risk premiums, containing the burden of interest and reducing the effort required to achieve budgetary objectives”.

However, this does not prevent the government from intervening in favor of families and businesses to support energy costs, even if “the margins for the disbursement of aid to families and businesses will probably be much more limited than in the last two years”, but “they can be expanded with the reduction of other expenses”. Visco therefore hopes for “temporary and targeted interventions, aimed at the nuclei and production sectors in greater difficulty”, which “will be able to help contain the reduction in real incomes and, in this way, the pressures on inflation connected with wage demands without compromising the balance of public accounts “.

And speaking of wage claims, Visco states that “the rise in official rates it will have to continue to mitigate the risk that the persistence of high inflation caused by the succession of supply shocks will translate on the expectations of households and businesses, fueling the dynamics of prices and causing stronger increases in wages “. However, the pace of increase in wages. rates “cannot be predetermined on the basis of pre-established projections or scenarios” and will have to be gradual, “carefully assessing the adequacy of the monetary stance on the basis of the evidence that will gradually become available”.