Bank of Italy, expensive energy will require more targeted measures and diversification of sources

 

Bank of Italy, expensive energy will require more targeted measures and diversification of sources


(Teleborsa) - The expensive energy situation has "worsened after the aggression by Russia on Ukraine" and since the beginning of the conflict there has been a 40% rise in the price of gas and a doubling of the price of energy electricity . This was stated by Fabrizio Balassone , Head of the Economic Structure Service of the Bank of Italy , during a hearing in the Chamber, underlining "we are all aware that in this phase of emergency the uncertainty about the economic prospects is higher".

The expert from Palazzo Koch warns that "if these increases were accompanied by a drastic reduction in imports from Russia, there would be significant negative effects on economic activity in Europe and Italy ", which are currently "difficult to quantify" , and a “Further increase in inflation”. with impacts on purchasing power and income. The fallout from the conflict - he explained - could be worth 2 percentage points of GDP in the Eurozone and "be relevant for our country as well".

"In the perspective of a protracted critical phase on the energy supply front, the support should become more targeted " on families and businesses - Balassone argues - "while paying attention to the effects on public accounts". The expert believes that the measures adopted so far "partially compensate for the energy price increases" which prove to be too vilified and sudden, but in perspective "the prices of carbon-based energy sources will have to gradually increase in order to guide the behavior of all (consumers, companies, investors) towards the goal of climate transition ".

"In order both to accelerate the diversification of the country's energy supply sources and to respect the environmental objectives agreed at European level, the measures to mitigate the increase in prices must be accompanied by greater recourse to other producers and containment policies of consumption ", underlines the expert of Via Nazionale, adding that" an extensive investment program will be implemented to increase the production of energy from renewable sources and the infrastructures necessary for the progressive electrification of energy uses ".

Comments

Post a Comment

Popular posts from this blog

Can I activate a credit card with a bank where I don't have an account?

  Can I activate a credit card with a bank where I don't have an account? Current account with credit card included: does it necessarily have to be my account or not? Let's find out together.  A credit card is a particular payment card certifying the credit granted by the bank to its holder: it is in fact equipped with a credit line that allows you to pay even for amounts higher than those actually available on the account.  Precisely for this reason, it is a service that is not granted to everyone with absolute lightness, but provides for checks on the income situation  of applicants. From what has just been said, it can be deduced that it will be much easier to obtain a credit card from a bank with which you are already an account holder.  The credit institution, in fact, will know the credit situation of the individual account holder, therefore it may have greater or lesser difficulties in granting the issuance of a credit card which, in many cases, can also ...
Read more

ECB, Visco: "Reduce price increases to avoid 'stagflation

(Teleborsa) - "In Europe gas prices increased by 8-10 times on average between the beginning of 2020 and February 2022, in the US they increased by 2 times". This is what the governor of the Bank of Italy, Ignazio Visco, said in his speech at the Bloomberg Italy Capital Markets Forum 2022 in Milan. This divergence - underlined Visco - shows that the EU is not facing "a problem of excess demand but of supply difficulties". In this scenario, in the face of a supply shock such as the one currently occurring on energy prices, - continued the governor of the Bank of Italy - "the monetary policy of central banks can do little, instead the budgetary and economic policy, perhaps with measures to "redistribute what is like a tax". And "if economic policy manages to reduce the transfer of price increases to other items" and "if the war does not last too long", then - Visco explained - "we may not have stagnation and high inflation...
Read more