Home » Giorgetti responds to the Monetary Fund: “We work for debt stability”. Panetta: “News on rates likely in June”

Giorgetti responds to the Monetary Fund: “We work for debt stability”. Panetta: “News on rates likely in June”

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Giorgetti responds to the Monetary Fund: “We work for debt stability”.  Panetta: “News on rates likely in June”

MILANO – Italian debt is under control. Word of the minister Giancarlo Giorgettiwhich in the aftermath of the warning launched by International Monetary Fund, according to which our country will need a “credible adjustment”, throws water on the fire. “Advice is always welcome. We are working in the direction of debt stability. We have had a one-off effect relating to the Superbonus which has distorted the deficit and debt data in the coming years. We know perfectly well that debt stability depends on the capacity to produce growth”.

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“We too have revised our growth forecasts downwards”, underlined Giorgetti, commenting on the forecasts attributed by the IMF to Italy, of 0.7% for 2024 and 2025. Citing the wars in Ukraine and the Middle East, Giorgetti notes that the downward forecasts are valid “for anyone” and “not just for Italy”. Then, he continues, “we know perfectly well that the Monetary Fund is always very prudent and historically tends to underestimate growth provisions for Italy. This comforts me because taking the average of the underestimation of previous years, it means that the forecast of 1 percent is perfectly realistic”, concludes Giorgetti.

Italy – Giorgetti then added – is studying the dossier on frozen Russian assets and how to proceed. “It is a particularly complex matter – he added – because it presents non-trivial legal aspects”. The reference is also to the discussion that took place yesterday evening, behind closed doors, during the inter-ministerial G7, in which the Ukrainian minister also participated Sergii Marchenko. The dossier, explained the minister, is being studied in view of the G7 in Stresa “with the aim of presenting ourselves with a concrete proposal to present to the government leaders”.

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The governor of the Bank of Italy also spoke from Washington, confirming that the ECB could decide on a rate cut at its next meeting. It is “probable that June could bring some news for rates”, said Panetta, adding that however a new “expansionary regime” should not be expected.

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