Recovery Fund, Bankitalia: “Implementation is fundamental”

The implementation of the National Recovery Plan is crucial to sustain growth and contain public debt. Thus the Bank of Italy, which observes that in recent months the economic trend has been solid but uncertainties remain

It’s like a recovering patient, the Italian economy. But it is still fragile and there could be relapses on the horizon.

The similarity we have used is not chosen at random, because the pandemic could get worse and the Bank of Italy, in its latest Financial Stability Report, points out how we are continuing to benefit from vaccinations and public support measures, as well as the low interest rates that facilitate the circulation of money.

All this is generating one in our country solid growth with “moderate risks” – explains Palazzo Koch – which could increase if the recovery becomes less intense. This is why – it is emphasized – the National Recovery Plan (and therefore the European resources of the Recovery Fund) will be fundamental to sustain gross domestic product for a long time and thus mitigate the weight of the enormous public debt.

Among the variables is that ofprice increase, which is creating tensions, but inflation (mainly due to the rise in energy commodities) it is not considered to be lasting.

Looking at the past months, then, the Institute records between families an increase in savings and wealth, which, however, does not appear homogeneous; we get more debt (i mortgages for homes) but at non-worrying levels, thanks also to cheap loans.

On this front, Via Nazionale draws the attention of the banks to the so-called impaired loans, that is, those that cannot be collected: they are under control but the institutions must remain solid and pay attention to the repayment capacity.

Also businesses they are catching up with the 2020 thud in a significant way and even the smallest, or fragile ones, are managing to obtain funding. It is even better for Insurance: the sector has returned to levels prior to the start of the pandemic.