Today the 97th World Savings Day is celebrated with the Governor of the Bank of Italy Visco and the Minister of the Economy Franco. The presidents of ABI Patuelli and Acri Profumo were present.
Savings, optimistic Italians but Covid weighs
“The Day of Savings is characterized, this year, by a recovery in the rhythms of production and in household consumption, which is associated with a recovery in loans. The improved climate of confidence will help to rapidly mobilize a precious resource, such as that of household savings, protected by the Constitution, contributing to the restart “. This is the message of the President of the Republic, Sergio Mattarella, on World Savings Day.
THE PRESIDENT OF ACRI – To ‘thaw out’ the savings of Italians “blocked on the current accounts of households and businesses” and reached 1,800 billion euros to transform them “into profitable investments for the future of the country” “tax incentives” are not enough, but it is necessary to continue vaccination campaign, “the restart of activities, the progressive reopening of places for recreation and aggregation, the reactivation of schools in attendance”. This was stated by the president of Acri Francesco Scent in his opening speech on the day of savings. “All of this can help spread a climate of growing trust and hope,” he said.
THE PRESIDENT OF ABI – “Banks must face the complex phase following the moratoriums and prudently foresee the growth of impaired loans that should not be underestimated or overestimated, also in order not to alter the market”. This was stated by the president of ABI Antonio Weather in Patuelli in his speech. “Banks must not be forced to sell off the impaired with too short and rigid deadlines” adds the president of the banking association according to whom “we will evaluate the effects of the civil justice reform”. In order to strengthen and prolong the recovery, Italy must be more competitive in attracting savings and investments “and” it is necessary to fiscally distinguish speculators from “cassettisti” savers and to spread popular shareholding, strengthening the roots and the solidity of businesses, including prospective ones. “, added Patuelli, according to which” the State would also have advantages from greater investments in savings: today it collects negligible sums from taxation at 26% of the liquidity deposited in current accounts which, with negative European rates, on average in Italy accrue 0, 02% gross interest per year “.” Tax pressure levels defined in the distant past, long before the pandemic, are not dogmas. More protection of savings, more equity and more fight against tax evasion are decisive ingredients for a prolonged conspicuous recovery “, he concluded.
THE VISCO GOVERNOR – The economic recovery scenario, which this year sees a growth higher than expected around 6% and a reduction in debt / GDP, is “a scenario that remains heavily dependent on the maintenance of substantial support from economic policies which, compared to the emergency phase, it can be more targeted and above all aimed at stimulating the supply potential of the economy “. He said it the Governor of the Bank of Italy, Ignazio Visco, in his speech on World Savings Day. On the speed of exit from the crisis and the scenario of a rapid recovery of pre-pandemic activity levels, there is “cautious optimism“albeit with” not negligible sectoral and distributional differences ” weigh “risks of a global nature”Visco added. These risks are linked to the delays in vaccination trends in many emerging countries and, in the euro area, to the difficulties in procuring raw materials and intermediate goods on global markets, starting with the sharp increases in energy prices.
The governor of the Bank of Italy returns to warn about the risks for savers from cryptocurrencies “which by their nature have an unstable value and can also favor illegal transactions”. Visco cautions on the “uncontrolled spread of these instruments, whose global market capitalization tripled in 2021, reaching 2.5 trillion dollars”. For the governor, another theme is the so-called stablecoins which, due to their characteristics, could be used for payments.
The financing conditions guaranteed by the ECB, which in the expectation will remain favorable, “may favor the decline” of the debt / GDP ratio but “it is not possible to count on a debt burden kept indefinitely at the current exceptionally low levels”, explained Visco, warning that “to avoid the recurrence of the risks of instability experienced in the past, once the crisis is over, it will be necessary to accelerate the return, also by reconstituting adequate primary surpluses”. The European Union should equip itself with fiscal capacity by issuing common debt. And “to quickly guarantee liquidity and depth to the market of this new instrument, one can think of a common management of part of the debts of individual countries through an amortization fund that would withdraw national instruments by issuing European securities”, including “at least the debt incurred by all member countries in the last two years to cope with the effects of the pandemic, “he said again.
To channel savings in bank deposits, which rose by 200 billion with the pandemic, to companies, it is necessary to expand the offer of financial instruments through the issuance of more bonds and liquid instruments of our companies, stated Visco, according to which among the mutual funds “only a small part finances resident companies”. The governor acknowledges “modest progress” in the increase in the value of the bonds of Italian companies “which remains low in international comparison”.
THE FRANCO MINISTER – For Italy “the dynamics of exports are important: if you look at the latest outlook of the IMF, Italy is, among the advanced economies, among those that have greater dynamism for exports, this year we are only behind to Japan, in 2022 we will come only after Spain “: the Minister of Economy Daniele said Franco, speaking at the World Savings Day. The “positive dynamic” is reflected in the current balance. “The balance of payments is positive for a significant amount, 3.5 points of GDP,” he explained. Nadef, also for the years following 2021, foresees growth rates “that we have not found since 2001”, the minister stressed. Franco focused not only on the recovery in consumption in recent quarters, but on the very accentuated dynamics of investments: this year gross fixed investments should increase by about 15%, more than offsetting the decline in 2020, and lead to the impact around almost 20% of GDP “and” in our forecasts it would remain above GDP growth also in the three-year period 2022-2024 “. The increase in energy prices “is a factor that can be an obstacle to the consolidation of the recovery – he said – The government has already intervened twice”, but the measures “have not prevented the further increase”. Therefore “the cost of energy for families is an issue that remains open and we will have to identify further interventions”.
Italy has a “high tax wedge, in the budget bill we have brought the resources available to 8 billion per year, the modalities for implementing this tax cut will be defined in the coming days and weeks. It is important that the government and Parliament to work together “, said the owner of the Economy.
“With the budget law we are again increasing investments, especially in the years after the NRP, with an additional 70 billion by 2026. In addition, the Development and Cohesion Fund will be increased by a further 23 billion between now and 2030”, said Franco, recalling also the refinancing, in the budget law, of the industry 4.0 program (innovative private individuals). There will also be “three billion to extend the program of guarantees provided by the fund for small and medium-sized enterprises, ensuring a gradual transition” towards the post-pandemic.