The need for an interest rate cut
The vice president of Unimpresa, Giuseppe Spadafora, emphasized the urgency of an intervention on interest rates by the ECB. With inflation down to 2.5% and economic growth stagnating, maintaining the current rates (3.25% on deposits and 3.40% for refinancing) risks exacerbating the economic slowdown. A rate cut of at least 25-50 basis points could mark a turning point for families and businesses.
Revitalizing the economy through credit
According to Spadafora, easier access to credit is essential to sustain domestic demand. Only with lower financial costs can businesses resume investing in innovation, while families will gain more spending power. The slowdown in productive investments and private consumption is currently compressing the entire European economy.
A call for a more accommodative monetary policy
The ECB is urged to adopt a more bold and proactive approach. While the current restrictive policy was justified in the past to combat inflation, it now appears outdated and harmful. The next Governing Council meeting, scheduled for December 12, represents a historic opportunity to restore favorable conditions for economic growth.
A decisive rate cut by the ECB is not just desirable but necessary to avoid a dangerous recessionary spiral. Now is the time to act boldly, ensuring a more stable and prosperous future for the European economy.
Call to action:
What’s your take on Unimpresa’s proposals and the need for a more accommodative monetary policy? Share your opinion in the comment section below!
