The government rejects the ECB: “Currency tightening will lead to recession”

The policy of increasing interest rates undertaken by the European Central Bank does not convince the government at all. The monetary tightening implemented by Frankfurt is rejected by the Deputy Prime Minister and Minister of Foreign Affairs, Antonio Tajani, and by the Minister of Defense, Guido Crosetto. The theme catalyzes the morning debate of the second day of “Ten years of love for Italy”, a party organized in Piazza del Popolo to celebrate the tenth anniversary of the Fratelli d’Italia, which will end today at 5:30 pm with a speech by Giorgia Meloni. «I heard the president of the ECB explain to the world that yesterday was the first in a series of interest rate hikes – says Crosetto, co-founder of the FdI – This is normally how we deal with inflation due to excess demand, but this price increase did not is due to excess demand. So, dealing with this inflation in this way is curious and, in addition, the EU has asked banks to pay some credits and the impact on Italian banks will be 100 billion. So the current crisis, high interest rates, banks asking families and companies to return: the sum of all these factors can hardly be positive”. “My concern is that” this decision “runs to put Italy and the EU in a frightening and dramatic spiral, so it is better to think about it sooner rather than later”, adds the defense minister. Thesis with which the deputy prime minister Antonio Tajani also agrees. «It is not positive for the European and Italian economies to raise interest rates – says the head of Farnesina – The risk is that by dint of raising rates we reach a kind of stagnation if not a recession. It is good that the ECB has decided to lift Giorgia Meloni The prime minister will speak this afternoon at the party for the tenth anniversary of his party rates of 0.5 and not 0.75 as I feared… I want to wait for the ECB to understand », he adds the national coordinator of ForzaItalia. However, the vice-president of the European People’s Party is convinced that our country “will be a protagonist” in Europe. “We believe that the EU must have a stronger presence than Italy. We need more Italy in the EU – says Tajani – We can’t complain about other countries if we don’t play an active role. The change of pace that occurred with the new government goes in that direction. We are acting with determination. For example, we decided that our country should play a decisive role in the Balkans». “Europe is not just France and Germany, Italy wants to be a protagonist and with this government it will be”, insists the deputy prime minister, who confirms that the government is working on a decree for the flow of migrants to reach a deadline of two year plan. «We are against illegal immigration, human trafficking, we do not want the Mediterranean to become a cemetery, explains the Minister of Foreign Affairs. We are working on a flow decree, so that there is planning, the idea is that it will be biennial». Countries that make agreements with us in this regard will have more legal immigrants to send to our country”. Another highly topical issue is that of Mes. The government’s position, announced the other day by the Minister of Economy, Giancrlo Giorgetti, and confirmed yesterday by the Deputy Prime Minister and Lega leader, Matteo Salvini, is to refer the decision on the use of the European Stability Mechanism to Parliament. I’m the only one who didn’t vote in the Mes when the entire Italian Parliament voted for it…”, recalls Crosetto. Tajani’s position is different: “I can’t change what has always been my position: I’ve always been in favor of using the Mess. I have and had doubts about the regulation of the ESM, because it makes the structure completely free of any democratic control, and I say this as pro-European. This regulation is not pro-European enough, because there is no parliamentary control over the use of the Mes. However, I think that since there was a vote by Parliament, it should be Parliament that makes a decision. There are reservations about the regulation, but this cannot jeopardize our belonging to the EU, our guiding star” . However, there is no division in the executive, guarantees Crosetto: «I am convinced that this government can last 5 years, not least because I do not see any other political forces in Italy that could shoulder such a dramatic period if not the centre-right led by FdI and led by Giorgia Meloni. In the MDL there is no opposition between parties, there has been no difference of tunic until now. The centre-right has a duty to change this country, blocked by ties, for the better. Unlike the left, we have nothing to lose.”