Brussels, 05/09/2006 (Agence Europe) - The objective of bringing the Italian budget deficit to below 3% “is not enough”, as “with a deficit of 2.8% we are barely putting a brake on the public debt in relation to GDP. To systematically reduce the debt, a deficit of less than 2% and an underlying balance”. This is what Lorenzo Bini-Smaghi, an Italian member of the European Central Bank's (ECB) board of governors, affirmed in an interview to Corriere della Sera on 5 September. He warned that postponing or watering down vigorous government measures would mean continuing to “speak of taxes and public finance manoeuvres over the next few years, with a depressing effect for the economy”. This would require, he explained, action “immediately” because “uncertainty is one of the factors that has the most negative impact on the economy”.
Will the slow down in the US economy have a negative effect on European growth? Asia continues to progress at a “very sustained rhythm and for Europe, Asia counts more than the US as a market outlet”, replied Mr Bini-Smaghi.