ECB and Bank of Italy’s Visco on the wires
Concrete risk? That’s a big risk then huh?
- Italian economy must show clear signs of revival to avoid risk to valuations of Italian bonds
- full margins for flexibility in budget rules must be used
- very lows inflation means strict observation of EU budget targets may have pro-cyclical effects, worsen imbalances
- Italian govt decision to balance budget more gradually appropriate given depth of current recession
- Monte Paschi and Carige will soon report capital reinforcement plans. Bank of Italy will oversee implementation
Visco – hoping the concrete isn’t quick setting
