CATANIA, Italy (MNI) – Italy needs structural reforms to bolster
economic growth, since government austerity measures alone will not be
enough to assure a lasting balance in public finances, European Central
Bank Governing Council member Ignazio Visco said Friday.
Whereas the low borrowing rates obtained by joining EMU had allowed
governments to service their huge public debt in the past, recent market
tensions have jeopardized this situation, “fueling [market] players’
doubts about the sustainability of Italy’s sovereign debt,” the governor
of the Bank of Italy said in a speech for delivery here
Italy’s anemic growth over the past two decades can be largely
attributed to the delayed and uncertain response of the productive
system to the challenges posed by technological innovation,
globalization and European integrations, Visco explained.
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–Paris Bureau: 331-4271-5540; ssandelius@marketnews.com
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