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"Let's wait for the facts" . Mario Draghi, the president of the ECB today during a hearing in the European Parliament, is being very cautious about the announcement that Italy has been in the country. intention to ask the EU for substantial derogations to challenge the rules on public finances. It is also throwing water on the fire, although it is feared that the end of quantitative easing may have far-reaching consequences on a high-debt country like Italy. "We must see the facts before making a judgment, the tests will be the facts, until now there have been words and words have changed," answers Draghi to a question asked by MEP Fulvio Martusciello ( EPP), which revived a long hearing without major insights, in which Draghi explained the details of the gradual reduction of debt purchases and explained why the ECB is confident that inflation will increase, despite the risks essentially by protectionism.
Martusciello retirement plans, whose costs are deemed unsustainable by some technicians, and public debt that may be inflated further if the government is heading straight for uniform tax and support measures income without adequate reduction of expenses. But Draghi does not fall into the temptation to make a judgment before seeing, in black and white, what the government really intends to do. It is limited to note that up to now there have been announcements, and that the words are "changed", likely reference to the piloting given by the majority parties regarding the permanence of Italy in the US. euro.
There is more in the "The intervention of the President of the ECB, which notes that the deficit of Italy of 480.94 billion to other countries on the system" Target2 " , a record, is "quite high" but "this is not something that has ever been seen before." "Draghi rejects the idea that quantitative easing has helped Countries like Italy: the mandate, mission and function of the ECB are price stability.Therefore, farewell to debt purchases should not give too much trouble to Italy in ECB badysis: the markets' response to QE's exit schedule, announced a month ago in Riga by the ECB, "was anything but dramatic." And in Frankfurt "we are confident – it still responds to Italy – that the economy is strengthening and that the reduction in securities purchases will be tempered by other monetary policy measures so that the Monetary expansion remains wide ".
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