The spread between 10-year German BTPs and Bunds increased slightly, the differential opened today at 195 basis points compared to 193 at yesterday’s closing, when it had also reached 200, Bonomi: “After the pandemic period, Europe has lost that cooperative spirit”
The situation relating to the spread between 10-year German BTPs and Bunds, with the differential opening this morning at 195 basis points compared to 193 at yesterday’s closing (where it reached 200), alarms the Italian economy. “The spread worries us a lot. I saw that Minister Giorgetti said that the increase in the spread alone this year will burn 15 billion. It is a financial maneuver. I believe that the path taken by the ECB was wrong. The only path of increasing rates to fight imported inflation is useless. Indeed, the risk is recession. It was necessary to balance the rate increase, as happened in the United States, with other stimuli” Carlo declared in an interview with La Repubblica. Bonomi, president of Confindustria.
Bonomi: “Two billion cuts are few”
“It would also be important to exclude certain investments from the Stability Pact. In our country investments have collapsed from 3.5% in the first quarter of 2021 to 0.8% in the last quarters” Bonomi further told La Repubblica. “In Italy we need to seriously review current spending, it amounts to over 1,100 billion a year: will we be able to save somewhere? Frankly, the two billion in cuts envisaged are few. In general there is a slowdown in world trade. But, of course, Germany is slowing down significantly. And it is our first trading partner, in 2022 trade reached 168 billion euros. We are a transformation economy, based on exports, and in the presence of asphyxiated internal demand, the Germany has always guaranteed us good economic performance. In short, we can never rejoice if the Germans are doing badly. There is a confusion in European politics and it seems to me that after the pandemic period, Europe has lost that cooperative spirit. And we are faced with great transformations, enormous challenges. In Europe we need to create common funds. If environmental sustainability is a common European good, all countries must invest with the same possibilities, otherwise we will split the single market”.