• IMF cuts estimates for Italy, stopped in 2019, + 0.5% in 2020
  • ECB, Draghi: "Optimistic about the future of Europe"
  • The ECB's new loans disappoint, but Italian banks fly to Piazza Affari

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by Tiziana Di Giovannandrea 18 October 2019The International Monetary Fund , after raising the alarm on duties considering them a threat to recovery, intervened on Italy claiming that the country continues to have a debt problem that is too high and what is needed is " a credible plan in the medium term "for its reduction. This is what Pol Thomsen, head of the European Department of the IMF, says, who believes that Italy suffers from "very low growth for decades" and continues to show "fundamental problems of low productivity". Labor market reform and public administration modernization are necessary, among the measures to be completed.

For his part, Mario Draghi , outgoing president of the ECB, in his speech to the IMFC, the Committee that manages the IMF, affirms that "the risks to the growth prospects of the euro area are on the downside" and are linked "to the prolonged presence of uncertainties "due to geopolitical factors, the growing threat of protectionism and weaknesses in emerging markets. Furthermore, Draghi states that in a context of economic weakness "governments with budgetary space that are facing a slowdown must act in an effective and timely manner". In fact "the implementation of structural reforms in the euro area countries must be substantially accelerated".

Draghi underlines that all the measures launched by the ECB have been decided to support growth : "The complete package of monetary policy decisions launched by the ECB provides considerable monetary stimulus to ensure that financial conditions remain very favorable and support expansion euro area and the convergence of inflation towards the medium-term objectives ". Draghi added: "The Governing Council continues to be ready to adapt all its instruments, as appropriate, to ensure that inflation moves towards its goal in a sustained manner".

Furthermore, the independence of the Central Bank , for the outgoing president, is crucial for credibility: "An important institutional factor for global monetary and financial stability is the independence of the Central Bank, combined with full responsibility towards citizens and of their elected representatives ". "Currently, - added Draghi - the independence of the Central Bank is questioned in a series of large advanced and emerging market economies. It is therefore important to remember that the credibility of a Central Bank and, ultimately, its success of his mandate depends on his ability to independently choose the appropriate policies ".

ECB: European Council officially appoints Lagarde as president
The European heads of state and government approved the appointment of the former president of the IMF, Christine Lagarde, head of the European Central Bank. "I sincerely thank European leaders," said Lagarde in a tweet. "I look forward to working with talented people to keep prices stable and protect banks". The European Council meeting in Brussels had previously formalized the replacement of the Italian Mario Draghi from 1 November "for a non-renewable eight-year term," reads a note. Both the ECB and the European Parliament have expressed a favorable opinion on the request.