European Central Bank Vice President
Luis de Guindos on Tuesday responded to criticism from Italian
government figures that it is being excessively cautious with
its interest-rate policy, saying rates were clearly on a
downward trend.
"I would say to Italian and European citizens that it is
important to to be cautious and prudent," de Guindos told ANSA
in an interview.
"We have reduced interest rates and the trajectory of our
monetary policy is very clear.
"But the level of uncertainty is enormous and we cannot make
mistakes".
De Guindos also called on Italy to drop its refusal to ratify
the reform of the European Stability Mechanism (ESM), saying
this would be consistent with a possible takeover of Germany's
Commerzbank by Italian banking giant UniCredit.
Italy is the only EU member not to have ratified the reform of
the eurozone's bailout fund, despite having come under intense
pressure to do so.
The reform is controversial here due to fears about its possible
impact on fiscal sovereignty and the Italian government has also
said the fund should be used to foster growth.
"I have spoken about the importance of a European approach
prevailing over a national approach, but this approach must be
consistent from all angles and in all kinds of situations," De
Guindos said.
"In my opinion, a pro-European approach to the integration of
the economy, the banking system and the capital markets should
prevail in relation to all the aspects involved, including the
ESM reform".
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