The governor of Bankitalia Ignazio Visco
Visco: “Growth cut by 1.4% in 2022”
In the Eurosystem’s early June projections, euro area growth in 2022 was reduced to 2.8%, from 4.2% expected in December. This implies an expansion of less than 1% during the year as the increase has already been acquired during the year. It is not good news that the governor of the Bank of Italy Ignazio Visco from the shareholders’ meeting of Abi, albeit made less dramatic by the fact that private savings hold up well. “Consumer prices in the euro area increased by 8.6% in June compared to the same period last year – says Visco – mainly due to gas with prices that have risen sharply from 80 to 180 euros per megawatt hour in Junewhile they were equal to 30 euros a year agowhen the flows had already decreased, and a little more than 10 before the pandemicsto. Inflation is expected to return to around 2% in 2024.
Il Governorafter recalling the next interventions of the Bce – rate hike on 21 July and further tightening in September, but also flexible purchases of government bonds – reported that only the announcement of the Frankfurt allowed the spread to deflate, after exceeding 250 basis points. On futurethe uncertainty is maximum: “The full success of monetary policy will depend also by the shared commitment, in fact, in the proposals and requests for budget interventions, to keep public debts on a path that continues to ensure full sustainability – he continued Visco. The Italian economy is expected to grow in line with the euro area in the two-year period 2022-2023. However, the risks globally are significant. In this delicate phase, the contribution that the financial system is called upon to provide in terms of allocating credit flows and supporting the economy it is particularly important “. An intervention, that of Visco, which has also substantially required a squeeze by the banks, which can only continue with the prudent management they had in recent years with the consideration, however, of the new emergencies that continue to be felt.
The new forms of credit and crypto risk
The recent acceleration in the use of new technologies has exposed to greater risks that have multiplied in recent months, with the outbreak of the guerra between Russia and Ukraine, although there are no indications of successful attacks. But in the face of the 12 incidents reported throughout 2021the first semester has already seen some 8, of which 5 attributable to a single attack against an external service provider. “There are crypto-assets that have no hedging in terms of assets, real or financial, against which they are issued; they are therefore devoid of intrinsic value and subject to extremely high volatility ”concluded Visco. But from his words comes an invitation to find the best way to regulate crypto activities.
Patuelli: continue with the tax reforms
“To attract savings towards investments in Italy it is necessary to continue with tax reforms: the strengthening of PIR goes in this right direction, but this reform is not enough to attract huge liquidity parked“. He is convinced of it Antonio Weather in Patuelli, president of the ABI, during the report. For the executive, it is necessary to reduce the tax burden on stable and non-speculative investments to trigger a more robust virtuous circuit to favor the transformation of liquidity into productive investments that are burdened by double taxation on company profits and on dividends.
“Important – he added – it will be the entry into force of the European Commission’s proposal for tax incentives for increases in corporate equity. It is necessary to rationalize and simplify tax regulations avoiding constant changes and also guaranteeing prospective legal certainty. It must never be forgotten that the Mezzogiorno is a large area of potential for sustainable development with positive effects for the whole of Italy and the European Union”.
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