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Padoan: “We need policy mix, not only austerity” Structural reforms, the real challenge for the EU and Italy

For the Minister of Economy, who spoke in the House, the growth estimates were overly optimistic and some of the causes of the crisis have not been well understood

ANSA

29/09/2014

“Structural reforms are the real challenge for the ‘ Europe and certainly for our country. ” The Minister of Economy Pier Carlo Padoan speaking at the opening of the Interparliamentary Conference on the fiscal compact in the House Chamber. The ‘new approach’, the ‘new word’ in the EU is “policy mix, not just austerity, but” best possible use of the tools that we have available. ”

Fiscal Compact

“The fiscal compact is designed in a more favorable macroeconomic context, account should be taken of the difficulties of framework and of exceptional circumstances, especially in some countries. This tool should be made more powerful and growth-oriented. ” This was underlined by the Minister of Economy, explaining that today we are “in semi-stagnation.”

Crisis, causes not yet understood

“Growth estimates were overly optimistic until a few months ago. The growth was due to move farther in time, and some causes are not well understood, “said Padoan. “The problems we face are deeper than just a cyclical”

No shortcut

The Governments put in all field the tools available, this is the input came from Padoan: “There are no shortcuts for growth, there are individual measures, but we need a strategy. Action must be taken by all sides, from the supply side and the demand side. It should be put in place all the tools that governments have at their disposal to restart growth. ” “There is convergence on the fact that work is needed on all sides,” he added, “on the supply and on the demand side, and put in place all the tools that governments have available.”

Adjustment complex

In a macro-economic framework of semi-stagnation and “inflation far too low,” as the current one, “all the maneuvers are more difficult adjustment, but we will continue to pursue them.”

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