European Central Bank Vice President Luis Deguindos said on Tuesday that interest rates are clearly trending lower, responding to criticism from Italian government officials of being overly cautious with interest rate policy.
“I would like to say to the people of Italy and Europe that it is important to be cautious and cautious,” Deguindos told ANSA in an interview.
“We are lowering interest rates and the trajectory of monetary policy is very clear.
“But the level of uncertainty is so high that you can’t be wrong.”
De Guindos also called on Italy to reverse its refusal to ratify the European Stability Mechanism (ESM) reforms, saying it coincides with the potential takeover of Germany’s Commerzbank by Italian banking giant UniCredit.
Italy is the only EU member state that has not ratified the Eurozone Rescue Fund reforms, despite being under intense pressure to do so.
The reform has been controversial here due to concerns about its potential impact on fiscal sovereignty, with the Italian government saying the fund should be used to boost growth.
“I have been saying that a European approach is more important than a national approach, but this approach must be consistent from all angles and in all types of situations,” De Guindos said.
“In my opinion, a pro-European approach to economic, banking system and capital market integration should prevail with respect to all relevant aspects, including ESM reform.”
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