Conversation with La Stampa

Fabio Panetta, Member of the Executive Board of the ECB, discussed the economic challenges facing Europe in an interview. He highlighted that the war in Ukraine has exacerbated global shocks, such as surging energy prices and supply bottlenecks, leading to rising inflation and slowing economic activity. Panetta emphasized the need for a comprehensive understanding of the war’s impact on demand and growth before making any decisions. He stated that monetary policy alone cannot tame inflation and called for support to end the war and reduce tensions in international markets. Panetta also stressed the importance of European cooperation in areas such as energy and food imports to respond to global tensions. He mentioned the possibility of gradually reducing monetary accommodation and ending negative rates and net asset purchases, but emphasized the need for data-driven decisions. Panetta also discussed the importance of closer coordination at the European level and the need for a common fiscal action to address global challenges. He highlighted the role of Italy in promoting European cohesion and fiscal capacity. Panetta also called for the regulation of crypto assets and the development of a digital euro to meet the growing demand for digital assets and payment immediacy.

Read more