- Crisis global and European, Italy vulnerable due to high debt, doubts on growth, reform uncertainty
- ECB determined to use non conventional means to prevent market malfunction blocking transmission of monetary policy
- Non conventional measures are by their nature temporary
- Essential to preserve price stability
- Intervention measures needed to prevent imbalances worsening, not a solution to causes of crisis
- Urgent need to strengthen European governance, activate financial support measures to manage crisis
- Italian banks face short term liquidity tensions, Bank of Italy requests banks to maintain balanced liquidity positions
- Italian banks have responded promptly to capital increase requests, confident they will continue to do so
- Italian banks can meet higher capital requirements, confident bank foundations will provide support, provide adequate backstop where needed
- Italy must implement budget and public spending measures agreed in September rapidly and in full
- Italy should shift tax balance away from measures that weigh on labour costs to property and consumption
- Italy needs structural reforms to lift competitiveness, create more business-friendly regulations, help capital formation, boost employment
- Letter sent by Italy to EU outlines organic reform plan, now it needs to be implemented
As reported by Reuters.
