Stock Groups

EU should consider sinking fund to manage COVID-19 countries debt -ECB’S Visco -Breaking

by Mike Robinson

[ad_1]

© Reuters. FILE PHOTO. European Central Bank Governing council member Ignazio Visco gestures while he talks during a Reuters interview, Rome, Italy May 31, 2021. REUTERS/Guglielmo Mangiapane/File Photo

ROME (Reuters), – Ignazio Visco, a member of the European Central Bank governing board said that the European Union should create a sinking fund in order to deal with public debt accumulated over the COVID-19 pandemic.

At an annual World Savings Day, the Bank of Italy governor stated that “the pandemic revealed the limits of European Union without common budgetary capability.”

Visco stated that Italy must accelerate the repayment of its debts to prevent future instability.

“If the economy continues its performance better than we expected, it is important to capitalize on this to decrease the deficit,” he stated.

He said that supply shortages are already affecting Italy, and warned of the potential for long-lasting effects on production and prices.

He said that the amount of bank deposits owned by individuals and companies had increased to 200 billion euro ($232.80 trillion) in the period of the pandemic. However, he stated that this cash accumulation would decrease as more people consume.

($1 = 0.8591 euros)

Disclaimer Fusion MediaThis website does not provide accurate and current data. CFDs are stocks, futures, indexes or Forex. The prices of Forex and CFDs are not supplied by market makers. As such, they may be incorrect and different from market price. This means that prices are only indicative and are not suitable for trading. Fusion Media does not accept any liability for trade losses caused by the data.

Fusion MediaFusion Media and anyone associated with it will not assume any responsibility for losses or damages arising from the use of this information. This includes data including charts, data buy/sell signals, as well as quotes. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.



[ad_2]