In addition to bankers, managers and entrepreneurs, the governor of the Bank of Italy, Ignazio Visco, attended the fifth speech to the financial market. Paolo Savona also wanted to send a positive message, recalling how Italy has always managed to come out head-on from situations of even more serious difficulties than the current one
“Bringing down inflation without creating depression and social unbalance is a very difficult task”. This is what Consob president Paolo Savona says who, during the meeting with the financial market held this morning at Palazzo Mezzanotte (headquarters of the Italian Stock Exchange), spared no words of alarm. “Inflation – he warned – is like a Hydra with many heads; if one is cut off and cauterized, the others act” and “high inflation also creates the conditions for a deformation of democracy and the emergence of forms of social violence”. In addition to Italian bankers, managers and entrepreneurs, Ignazio Visco, Governor of the Bank of Italy, was in the front row listening to President Paolo Savona’s fifth speech at the market.
Savona: “Italy knows how to give the best of itself, why shouldn’t it happen now too?”
An alarmed and sharp speech by the president of Consob who, in his speech to the financial markets, warned about how the increases in the cost of living have created a consequent increase also in taxation but not in wages. “Financial wealth – he added in fact – continues to register a serious impoverishment of its real value”. However, Paolo Savona also wanted to send out a positive message, recalling how Italy has always managed to come out of situations of even more serious difficulty than the current one, head held high. “There is no reason – he declared – why he cannot do so even in the current difficult international circumstances where, among other things, the winds of war have begun to blow with more force, under the pressure of national selfishness that has never ceased” “The country – added Savona – has given its best in every age and in every circumstance. Why should the opposite happen today, knowing full well that we have cultural and material resources just waiting to be mobilised?”.
The activity of Consob
“Savings, the incentive and protection of which is a value recognized by the Constitution, – continued the president Savona in his speech – remains the main object of Consob’s activity aimed at contributing, through the correct functioning of the financial market, to the stability economic and social situation of an aging country and therefore needs to increase real growth to support the level of general well-being achieved and improve its distribution among citizens”. The number one of Consob then promoted “the recent initiatives taken by the Government” in terms of savings and investments, stating that “they go in the right direction”.
The reasons for inflation and Consob proposals
The reason for the BTP spread, Paolo Savona explained, is to be found “in the highness of our state debt” and also affects “the absence of a last resort support mechanism characterized by the certainty of interventions to counter attacks speculative”. However, he specified, “instead of pursuing a reduction of the public debt, which would certainly have deflationary effects, a rapid return to a primary surplus of the state budget is important and urgent, accompanied by a trend in new debt proportionate to the growth trend of the GDP and the private savings that must accommodate it”. The Consob president then put forward the proposals to make “a positive contribution” to the strength of Italian companies in exports: help, he explained, “can come from a strengthening of the capital market, mainly of the Milan Stock Exchange, an objective already on our economic policy agenda”. The increase in energy prices in 2022 has interrupted the “good performance” of Italian exports but, if energy costs come back, “the ability of Italian companies to preserve the achieved a good level of international competitiveness, mainly due to having identified its strengths in technological innovations and in the ability to satisfy the preferences shown by customers”.
Source-tg24.sky.it