The credit crunch hits businesses
The current monetary policy of the ECB, with very high interest rates, is causing an unprecedented credit crunch. This situation is having devastating effects on the real economy, particularly on small and medium-sized enterprises struggling to obtain the necessary financing for investments, expansions, and, in many cases, mere survival. The lack of access to credit is stifling innovation, hindering growth, and putting thousands of jobs at risk.
Families as victims of restrictive policy
Families are also suffering due to high interest rates, which make the cost of mortgages and consumer loans unsustainable. This reduces the purchasing power of families, forcing them to drastically cut their consumption and creating a negative domino effect on the entire economy. The real estate sector, fundamental to the economic health of any country, is experiencing a significant slowdown, with falling house prices and stagnating real estate transactions.
ECB and the lack of economic sensitivity
The president of Unimpresa, Giovanna Ferrara, commented on the ECB’s decision to keep interest rates unchanged at 4.25%, describing it as “contrary to expectations of a 25 or 50 basis point reduction.” According to Ferrara, this choice shows a lack of sensitivity and understanding of the current economic reality that businesses and families are facing.
Repercussions across all economic sectors
The repercussions of this monetary policy are being felt across all economic sectors. The reduction in business investments and the contraction of household consumption are leading to anemic economic growth, if not a recession. This scenario could be avoided if the ECB adopted a more accommodating policy that takes into account the real needs of the European economic fabric.
Increasing social inequalities
The current ECB policy is exacerbating social inequalities. Low-income families are the most affected by rising credit costs and reduced purchasing power. While large companies can still access international capital markets, small and medium-sized enterprises, which form the backbone of the European economy, are left to fight an almost impossible battle for survival.
Conclusion
The ECB must recognize the fundamental role that credit plays in the economy. Its rigidity is stifling economic growth and increasing difficulties for millions of European citizens. It is essential that the ECB immediately revises its monetary policy and adopts measures that facilitate easier access to credit, thus supporting economic recovery and reducing social inequalities.
