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ECB: Pagani, anti spread shield is a step forward

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The ECB raises the cost of money: the consequences (ANSA)

(ANSA) – ROME, JUL 21 – “The criteria” for the activation of the new ECB anti-spread shield are “a bit complicated” but it is still an “important step forward” that creates “a permanent tool”, a “framework that can then be modified, revised, improved”. Fabrizio Pagani, former head of the Technical Secretariat of the MEF and currently Global Head of Economics Muzinich & Co. professor of Sciences Po – Paris and Luiss, views the ECB’s announcement on the TPI mechanism with moderate optimism. “As ECB President Lagarde said, the decision to raise rates by 0.5%”, following a more ‘hawkish’ orientation and going beyond expectations of a few weeks ago, “allowed an agreement on the ICT. unanimously “. It is, Pagani remarked, “a permanent tool, not like Qe or Pepp, which can be activated to counteract unjustified, disordered market dynamics”. These criteria will in any case be verified in the field and therefore subject to improvement. In any case, he notes, it is a mechanism that does not provide for automaticity but delegates the final decision to the ECB’s Governing Council, taking into account compliance with the budget criteria indicated by the EU, the absence of serious macroeconomic imbalances, the sustainability of the debt. , the adoption of “solid and sustainable” policies.

(HANDLE).

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Source: Ansa

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