ECB President Christine Lagarde spoke yesterday at today's European Council: "The ECB has done its part to fight the coronavirus crisis, so far, and claims to have done so successfully ". Now it's up to Europe with EU instruments such as the Recovery and Resilience Fund which, to reach its potential, must be firmly anchored to sound structural policies in individual states ".
Lagarde argues that the new financial program under discussion, the Recovery Fund "it will have to be firmly rooted in sound structural policies conceived and implemented at the national level, only in this way if well thought out could it be possible to contribute to a faster, quicker and more uniform recovery and consequently support the effectiveness of monetary policy ". These policies, added Lagarde, are particularly important to revive our economies with a particular focus on accelerating investments in priority areas such as the green and digital transition ”.
Lagarde also said she hopes the plan will reach at least 750 billion with most of it in grants and a small part in loans. Returning to the ECB, the president of the Community Institute said that the measures such as Pepp are effective, adequate and are working, and the Bank intends to use the entire sum of 1.350 billion of the pandemic program. The Pepp is a special instrument with a double objective: it avoids the fragmentation of the markets and implements an accommodative monetary policy approach by intervening against the tightening of financial conditions, essentially the strength of the Pepp tests flexibility.
Giuseppe Conte meets Macron
With you: “Our concern is that everything is finalized as soon as possible. The situation is complicated, there are different sensitivities ».
The premier has just finished his meeting with French President Emmanuel Macron and leaves himself to some consideration: “what is at stake is Europe, the competitiveness of the EU in the global world. And there are several dangerous curves, such as the unanimity request on the use of aid made by the Netherlands: A request that is not in line with European rules ”.
Before meeting Macron Conte he said: “We are refining our weapons, I would like to say sharpen our weapons but it seems to me an improper metaphor. We are in the final rush. Italy and France are on the same side. But that's not all. And at this point it is useful to take a step back. On the plane to Brussels, Conte reread the statements of Christine Lagarde who, as mentioned, argues that the funds must be deeply anchored to solid structural policies.
A proposal from Lagarde not far from that strongly supported by the frugal countries.
In the morning Conte had made a round of phone calls to try to broaden the web of negotiations with the heads of government of Hungary, Finland and the Czech Republic. Viktor Orban asked him to mediate on the clause that could reduce funds in favor of countries that do not respect the principles of the rule of law. Conte listened. Among his phone calls there was also the one with Sebastian Kurz, the Austrian chancellor who has beaten Italy several times. Italy is aiming for a Recovery Fund with a dowry of 750 billion unlike the 550 proposed by the Netherlands and company.
Conte then went ahead (so as not to leave any doubts to his interlocutors) stating that the resources will allow Italy to invest in infrastructure, in digitization, and to pursue the economic and social revitalization that the country needs. To say .... you do not invent anything else.
But who will check compliance with the objectives that each country will propose to obtain funding? Today it should be the Commission, but many argue that it will be entrusted to the Council, therefore to the judgment of the Heads of State and Government of the EU countries. In the Commission there is Paolo Gentiloni, an Italian who should check, not applicable for EU bureaucrats.