The Bank of Italy explains why Putin has put our backs to the wall in 5 months

Within 5 months, Putin was able to literally put our backs to the wall. Here’s how he did it according to the Bank of Italy.

During a speech to the Italian Banking Association, Abi, Ignazio Visco has disclosed the reasons why Putin has managed to put our backs to the wall, in just 5 months, causing the consequences that are now there for all to see and that will not begin to diminish.

In particular, according to the Governor of the Bank of Italy, our country is a recession risk in the event that Russia decides to stop gas supplies. In this case, in fact, there would be a series of repercussions that would affect, in particular, the foreign trade sectors. Not only that, but the confidence of Italians in the future would also be at the expense. In such a context, in fact, a feeling of uncertainty would grow which certainly does not do the whole good economic system. Der made, it is evident that the current geopolitical tensiona is having a devastating impact on the Italian economy as well as on the German one. This is caused by the fact that both Italy and Germany are heavily dependent on gas russiano.

In this regard, Visco stated that the war in Ukraine it caused uncertainty on the entire world economy with serious consequences on trade as well as on manufacturing production. The result is runaway inflation that is fueled by continuity increase in prices relating to raw materialsAnd. In any case, the Governor of the Bank of Italy said that if the situation continues, I will intervene raising the so-called official rates by around 25 basis points during the meeting scheduled for Thursday 21 July. In addition to this, Visco has made it known that the ECB is committed to the development of a program that aims to protect the Eurozone. However, he stressed that any intervention will be effective only if it will be shared by the tax authorities in order to follow a path of financial rebalancing. To be Fr.the small banks are certainly at risk which therefore have less capacity to generate income streams capable of covering any risk. Consequently, Ignazio Visco advised them to promptly evaluate any type of action to overcome a crisis situation.

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