If the Trump administration confirmed the promise of importing from the European Union, it will be among the most affected countries with Italy Germany. And according to the Governor of the Italian Bank, Fabio Panetta may cause our economy to contract up to half percent. He said: “These estimates are based on an increase hypothesis of the United States against China by 60% against China and 20% against other countries. Instead, if they limit themselves to Canada, Mexico and China with measures in the first presidential measures, The effect would be almost zero in the euro zone, PaTa said Panetta.
“Tasks may cause an increase in depreciation when the euro is compared with the dollar. Panetta. In short, the net effect of tasks on inflation can be included, even if not a bit negative.
Commercial wars damage growth even in the countries that initiate them. It is possible for the US administration to use ads as a negotiation leverage on tasks to redefine economic and political relations with other areas of the world. “
Fabio Panetta
But then what scenarios are waiting for us? According to the European Governor, a “common response to the commercial challenge from the United States is required, the current disorders of the economy are not an inevitable destiny” Panetta is a sign of the high savings rates of Panetta, which emphasizes how the weakness of investments is.
Three objectives: Innovation, exit from carbon and strategic autonomy. “In order to reach them and create an economy that can grow and compete with, higher than the community budget, large resources will be required. Common investments will have to be financed by the regular issue of securities as part of a European product agreement. EU” Chiosa Panetta.
Dragon’s attack on the European bureaucracy
The reflections of the Italian Bank Governor’s reflections come after an editorial publication by the former president of the European Central Bank and former Italy’s prime minister Mario Draghi. Financial times The European Union warns. “Europe has successfully brought on its own,” says Draghi encourages the destruction of internal barriers to the use of tax policies more proactively and to promote innovation and reduce export dependence.
“Radical change is needed,” he says. “A more proactive use of tax policy in the form of larger production investments will help reduce commercial excess and send a strong signal to companies to investigate and develop more,” says Draghi, “a fundamental change in the mentality”. .
“The spread of the regulation is designed to protect citizens from new technological risks. Internal obstacles are a legacy of times when the national state is a natural action frame. “
Mario Draghi in Financial Times
Draghi’s analysis, “recent weeks reportedly reminded the fragility of Europe. The Euro zone barely grew at the end of last year and underlined the fragility of internal healing.” Draghi sees the EU economy’s dependence on external demand for the weakness of the society, and explains how Trump’s only perspective of duties of duties has shown more uncertainty about European growth.
Draghi wants a radical change
“Two main factors have directed Europe in this difficult situation, but they may allow it to reappear if it were willing to face a radical change,” Draghi says. “First, the inability of the EU to face supply restrictions, especially high internal barriers and regulatory barriers”, “much more harmful to the growth of any ratio that the US can impose”. According to the IMF, the known “Europe’s internal barriers are equivalent to 45 percent for production and 110 percent for services”. Then there is brake on the growth of technological companies due to the effect of regulation. “In general – Old Premier – Europe has actually increased its customs rates within its limits and strengthened the regulation in a sector representing about 70% of the EU GDP”.
According to Draghi, Europe’s failure to reduce internal barriers also preferred a high commercial opening. While internal restrictions remained high, paradox, externals decreased with globalization.
Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
