Italy's prime minister adviser, Riccardo Fraccaro, says the ECB should wipe out or hold forever the government debt bought during the crisis
Fraccaro said in an interview yesterday:
"Monetary policy must support member states' expansionary fiscal policies in every possible way. That includes cancelling sovereign bonds bought during the pandemic or perpetually extending their maturity.For the central bank, it's one thing to be independent from politicians, it's another to not understand where the world is going. The ECB should help countries relaunch their economies."
The ECB has come out quite a number of times already to say that they aren't doing all this as a form of monetary financing, so this is a rather bold statement and plea coming out from Italy and Fraccaro in general.
ECB executive board member, Isabel Schnabel, also produced an opinion piece on this early last month here. The whole point is just to not make it obvious as it is I guess, but such is the times that we are living. For some context, Italy's debt ratio to GDP:
