Visco at the Festival of Economics: “Monetary policy must be accompanied by a prudent budgetary strategy”

“Monetary policy must not be left to operate on its own, but must be accompanied by a prudent budgetary policy and the responsibility of the social partners, a concept that exists in Europe”, declared the governor of the Bank of Italy Ignazio Visco, speaking at the Turin International Economics Festival. «In Europe there are trade unions and businesses and when they say that there is a shock and it shouldn’t be accommodated, it is not because we want wages to fall but because wages must grow with the growth of the economy and if motion the price-wages run-up would be illusory».

“We have before us estimates of an increase in the world’s population by another couple of billion over the next 20 years. Not in the advanced countries, which will remain around one billion. The rest of the world will be 8 billion. If we close there will be 1 billion on one side and 8 billion on the other. If everyone grows less in closure, what will happen with regard to the question of migration? We will have extraordinarily stronger pressure than there is now. Our aging population will require us to be open on this level as well but it must be managed. But management is very complex if we are not prepared» he continues.

“We have fallen behind on the electric car. There has been a lack of awareness of the importance of innovation”

«Italy and Europe have remained behind on the electric car. There has been a lack of awareness of the importance of innovation in this field» said the Governor of the Bank of Italy, Ignazio Visco, at the Turin Economy Festival. «In digital innovation – added Visco – the leadership is certainly not European. It’s hard to expect innovation to come from European companies, but we can fall into so many areas and developments that we don’t even imagine. However, unity, cohesion and sharing of objectives are needed».