ECB, without help Italy is likely to increase its costs to 13 billion ⋆ ZON

Thanks to the renewal of the bonds, the ECB will be able to buy Italian securities for around 3.3 billion euros per month. Interest rates will also increase

It will be a long goodbye, rather than a real goodbye. The program of purchases of state bonds and bonds of BCE ( quantitative easing ) will have a very strong impact on the caisses de the Italian state. Indeed, thanks to the renewal of the BTP, the Eurotower will continue for several years to buy Italian securities for about 3.3 billion euros per month . In addition, the same Mario Draghi stated that the program could be reactivated at any time

The end of QE however, will increase the spread, which could reach 400 . It means a real blow to the Italian coffers. The additional cost for the state would be 4 billion the first year, 9 billion the second and more than 13 the third. Almost the amount needed to finance the income of citizenship "grillino", which in this way will certainly not see the light.

In the Italian case, therefore, from here 2027 each year will expire and the titles will be repaid for ] 40 billion . Over the last two months, however, the interest of a ten-year construction business towards the ECB has gone from [1,7%] per year in early May to 2.7% currently . German, on the other hand, fell from 0.5 to 0.3% . Higher interest means higher costs for public finances

In general, financing becomes more expensive for all since the interests of different financial products always evolve in a coordinated way. If the interest increases, the value of the stock is reduced. As a result, Italian banks, which own construction and public works and construction, would be at a great disadvantage. They would even lose 340 billion euros.

A market with artificially low rates, on the other hand, tends to favor the richest and to increase inequalities. It will not be easy to get rid of the easy money addiction. But we must find a solution.