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February 08, 2021Christine Lagarde, in front of the European Parliament that must approve the ECB's annual budget in plenary session, the Frankfurt institute also takes sides alongside the president in charge, Mario Draghi: "I have faith in Draghi" she said.



"Targeted aid for growth"


The prime minister in charge, in his speech at the Rimini Meeting, had spoken of "good debt" and "bad debt", criticizing the policy of subsidies.

Today in Brussels, Lagarde puts the pillars of this program by arguing that EU aid must not be interrupted but must be distributed in a targeted way, focusing it "on the most useful interventions for growth".

An important clarification as the president in charge prepares to submit the government's program to the parties of his large majority.

Already in the morning, in an interview published in the "Journal du Dimanche", Lagarde had spent words of great appreciation for her predecessor.



"The ECB supports Draghi"


"Italy and Europe are fortunate that Mario Draghi has accepted the challenge of helping to put an end to Italy's economic and social crisis, at a time when the Eurozone country is hit the hardest severely from the pandemic ".

Draghi for Lagarde "has all the qualities one needs: he has the necessary competence, courage and humility" to "restart the Italian economy with the help of Europe".

The ECB will not let Draghi lack its support.



"The turning point will come in the summer"


2021 will be a year of recovery for the euro zone.

For this reason, Europe must not end its anti-crisis monetary and budget support too soon.

With the persistence of the virus "the recovery has slowed down, but has not derailed. The citizens are obviously waiting impatiently for it".

The indicators suggest that the turning point will come in the summer and will lead the Union towards a greener and more digital future.

We must not "repeat the mistakes of the past, removing the stimuli at once", but implement a flexible reduction.



"Impossible to cancel the debt"


There is only one thing that cannot be done and that is the cancellation of the debt by the ECB "is inconceivable" and would be a "violation of the European treaty which strictly prohibits the monetary financing of states".

A way to respond to the appeal of a group of economists led by Thomas Picketty who instead asked to draw a nice stroke of the pen on the government bonds that Frankfurt has bought in recent years to support the European economy.

The program, started by Mario Draghi in 2015, was strengthened last year by Lagarde.

Further than that, however, it is not possible to go.

"The ban on monetizing debt is one of the fundamental pillars of the euro".

"If the energy spent asking for a cancellation were devoted to a debate on its use" on which sectors to invest and how it affects public spending "it would be much more useful," he added.



"To channel economic support where it is most needed"


"As I have stressed several times in this Parliament - continued Lagarde -, it remains essential that monetary and fiscal policy continue to work hand in hand. Fiscal policy - both nationally and internationally. European level - remains crucial for supporting the recovery in the euro area and addressing the impact of the pandemic. Can channel economic support where it is needed most. Protecting workers and families and providing a lifeline to vital businesses that have been hit hard by the pandemic, fiscal support is particularly powerful in boosting aggregate demand. "



"Cohesion is needed"


In any case "we must remain vigilant: although fiscal support is essential at this stage, it should be targeted and concentrated on the measures most conducive to economic growth. In this context, the innovative Next Generation Eu package should be implemented in so that the EU and all its member states come out of this crisis with more solid economic structures and a high degree of cohesion ".



"Fighting climate change"


Of course, central banks are not responsible for climate policies, but at the ECB "we will continue to fight climate change in line with our mandate", reiterated President Lagarde.

"We can't ignore climate change just because we're not in the driver's seat."

According to Lagarde, "pursuing policies aimed at decarbonization has macroeconomic and financial implications and consequences" for our primary objective of price stability and for our other areas of intervention. "



Recovery, the vote


in the European Parliament tomorrow Tomorrow the European Parliament will vote on Regulation establishing the Recovery. Voting with fibrillation occurs within the League, in light of the important innovations introduced by the new executive project led by Mario Draghi.



Lega: "We will decide after the meeting with Draghi"


"Parliamentarians, economists and technicians of the Lega are at work in these hours in view of the vote on the Recovery Fund scheduled for tomorrow evening. The Lega, which abstained on the document in commission at the time of the Conte government, is waiting for the meeting with Professor Draghi scheduled for tomorrow before making the final decision ".

This is what leaks from sources of the Brussels League.

"If, instead of the austerity practiced in the past, we passed to a phase of investments, growth and economic revival, without increasing taxes, but freeing up energy and resources in the public and private sectors, the scenario would change completely", underline the same sources. leagues.



"One thing was the silence of the previous government, which did not involve anyone in the drafting of the Recovery, another would be an investment, growth and development plan shared with the country, which would make it possible to overcome the policies of cuts and austerity that have caused so much damage" , is the reasoning of Salvini's party.



Fratelli d'Italia

has instead announced that it will abstain again.