High ECB rates worry Italy-Economy Minister
2022.12.17 11:52
High ECB rates worry Italy-Economy Minister
Budrigannews.com – According to Italy’s economy minister on Saturday, the possibility of further interest rate increases by the European Central Bank is troubling for highly indebted nations like Italy.
At an event in Rome, Economy Minister Giancarlo Giorgetti stated, “We have benefited as a country for several years of a favourable situation, with interest rates close to or below zero, and this is now changing.”
The European Central Bank (ECB) raised its benchmark interest rate by 50 basis points on Thursday, which was widely anticipated. However, the ECB warned instead of ending such hikes, squelching hopes that they would end soon.
The European Central Bank was criticized by right-wing ministers in Italy for increasing financial pressure on one of the euro zone’s most indebted nations.
Delegate Head of the state and Association pioneer Matteo Salvini marked the ECB’s direct “amazing, confounding, stressing”, while Guard Priest Guido Crosetto said the move gambled with assisting Russia with subverting Western fortitude for Ukraine.
Giorgetti, a senior individual from the Association alliance party, said the rate climbs “ought to here and there encourage us to be much more cautious as to public funds and survey the ramifications for the genuine economy”.
Italy’s 2023 budget, which is currently being debated in parliament, includes approximately 21 billion euros to assist businesses and families with their first-quarter electricity and gas bills in the face of skyrocketing energy costs.
Giorgetti stated that Rome was contemplating new relief measures, including a plan to establish a protected price for energy consumption of up to 70-80% in comparison to previous years. He also stated that it was “unrealistic” to anticipate bills falling by March.
He said that this mechanism could take effect in the spring of next year to encourage energy savings.
Giorgetti also urged the European Union to respond to the U.S. Inflation Reduction Act (IRA), which he said was threatening the national economy, with force and strategy.
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“In light of the IRA scheme, some Italian companies are considering moving production to the United States; it would be a disaster,”
The European Union is concerned that the $430 billion IRA scheme, which provides generous tax breaks for domestic production of energy sector components, may disadvantage European companies, including car manufacturers and green technology developers.
