Is inflation a temporary phenomenon? «Yes, I think that the inflation of these days is linked to a series of temporary phenomena, first of all, as in Italy, the rise in energy prices. The 69% increase in prices in Italy is linked to the rise in energy prices, but also to geopolitical and climate problems. We are almost certain that these temporary phenomena will disappear. We will see in 2022 ». This was stated by the president of the European Central Bank, Christine Lagarde, to “Che tempo che fa” on Rai 3. The indication of the French politician and lawyer throws the ball forward, between analyzes and conclusions of the current crisis to be postponed to the year next where it will be possible to better balance the weight of the economic trend.
Then the praise to Italy and its recent rating increase by S&P .: «Every now and then there is good news. I think the economic results we can observe are eloquent. Italy has overcome the pandemic well, gave a very strong response to the crisis. The reforms that have been decided are such as to convince the rating agencies that Italy has taken the right path ”. Generally questioned on the relationship between pandemic and economic safeguard, Lagarde commented: “This pandemic has taught us that we are all interdependent. If we are not all protected, all vaccinated, we will all be at risk. The collective imperative of everything is evident “underlining that the second lesson of the coronavirus emergency” is that we must put men and women before economics and finance, in first place. Preserve wages and businesses. It was the great challenge of Covid-19, which was faced in a different way than in 2008 ».
Why did the European Union indicate 2% as the inflation rate? “Having an average rate of this type allows you to have room for maneuver, so as not to leave the Central Banks without tools in hand to respond to a crisis with support for a recovery. Worldwide, 2% has been chosen as the price stability threshold ». On the objectives of the ECB he added: «In March 2020, when the Covid-19 pandemic exploded, we decided to reaffirm the commitment of the Euro. It is the ECB’s goal, its responsibility, to ensure price stability and support economies when they are hit in this way. It was decided to establish the Pep, the pandemic energy purchase program ».
The explosion of the Omicron variant, with an apparently higher rate of contagiousness and danger for the community (even if the WHO has stalled on these assessments), has put the debate on vaccines in the poorest countries back at the center. Asked why there are 6 trillion in fiscal aid thanks to Pepp and the size of the 50 allocated to bring the vaccine in the most difficult areas, Lagarde specified: «On the occasion of this crisis, we understood that the variant that develops in Botswana and is discovered in South Africa can arrive in Europe in a few hours. And it confirms the principle I mentioned earlier: we must be united. Fortunately, the G20 has Rome decided to vaccinate at least 30% of the world population in all countries of the world and 70% by mid-2022. It is not enough to say that we will do it, but we must take action. The 50 billion is a drop of water, but logistics and organization will have to be supervised ». In a second moment “we will go further, but establish analysis centers to understand how the variants develop”.
On the Next Generation EU, Lagarde concluded: “” All Europeans have a responsibility, that of carrying out this plan to show those who are still cynical and skeptical what Europeans are capable of doing together. I am very confident “.