Giorgetti: Eurogroup urged to address the energy crisis and rising borrowing costs

Supply-shock inflation: ECB tightening does not solve the problem

(Il Sole 24 Ore Radiocor) - At the Eurogroup meeting currently taking place in Dublin, “I made a fairly clear and direct statement regarding the current economic situation in Europe and Italia”, in particular, “I urged everyone” to address the issue of energy, “which I consider a genuine emergency” both from an economic perspective and in terms of competitiveness. This was stated by the Minister for the Economy, Giancarlo Giorgetti, speaking via video link from Dublin, during his address at the Portofino Talks. “The second issue I invited people to reflect on is, of course, that of interest rates – or rather, the cost of debt, which has begun to rise at an alarming rate in relation to many circumstances,” he continued. “I have observed that inflation stems from a supply shock, not so much from an overheating economy and demand that needs to be cooled by a restrictive monetary policy,” he continued, referring to the monetary tightening decided by the ECB – “This may help, but it does not in itself solve the problem.” If the two wars continue in this way, inflation “is inexorably set to rise: this is another serious problem for households and businesses.”

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