Mes, Patuelli: “It would have guaranteed the stability of the banks”
As part of an interview given to Repubblica, the President of the Italian Banking Association, Antonio Patuelli, he expressed his point of view on crucial issues concerning Italy and the European Union. According to Patuelli, the recent vote in the Chamber does not change Italy's situation within the ESM, and the debate on the ESM itself has been loaded with excessive political meanings, leading the Banking Association not to express its opinion on this issue either during the Annual Meeting.
Read also: Mes, Giorgetti: “The EU will now make us pay and I will have to put my face to it”
The interview continues with Patuelli's vision of the new ESM, underlining that this would guarantee banks greater support in the event of future crisis events. He highlighted how the banking crises from 2015 onwards were managed with national resources, and reiterated the importance of the ESM in providing a more robust support mechanism. However, he avoided entering the political debate on Italy's isolation in the EU, declaring that the issue is of a political nature and the Banking Association does not make assessments of this type.
Read also: “No to the ESM? ECB and EU Pact protect Italy: the spread will not rise”
With respect to the new Stability Pact, Patuelli expressed a favorable opinion, underlining that the original Pact was a European agreement from thirty years ago. He explained how the new Stability Pact is a mature compromise, taking into account the developments of the last thirty years, including the birth of the Banking Union. He indicated that this new agreement does not limit development and praised the review work carried out over the last two years.
The interview then focused on rates and the absence of signs of reversal from the ECB. The three-month Euribor: on November 16th it was at 4%, on December 20th it reached 3.92%. And the 10-year IRS, which is the most used index for mortgages, reached its peak on October 3 with 3.52%, but on Wednesday it was at 2.42%. And it also applies to government bonds: six-month BOTs rose to 4.05% from October to 3.72%; 10-year BTPs from 4.99% on 18 October to 3.61%, a huge difference. Patuelli highlighted the sharp reduction in market rates despite the absence of explicit interventions by Western central banks. He discussed the market's beliefs regarding the reduction of inflation and highlighted the favorable conditions for investments in euro Europe.
Finally, the conversation moved to Superbonus and investment prospects. Patuelli noted that despite the end of the Superbonus, positive trends in the construction industry persist. He underlined that the current incentives, ranging from 50% to 70%, still offer ample opportunities to initiate construction projects.
#Patuelli #ESM #guarantees #banks #shift #balance