
The recent confirmation from Istat that inflation will settle at 1% in 2024, significantly down from 5.7% in 2023, is a pivotal signal for European economic policies. According to Giuseppe Spadafora, vice president of Unimpresa, this data shows that the European Central Bank’s (ECB) restrictive monetary policy has achieved its main objectives: general inflation is under control, while core inflation stands at 2%, aligned with ECB targets.
Unimpresa: lowering rates is crucial for growth
Spadafora emphasizes that there is no longer any justification for maintaining the reference rate at 3%. Instead, it is imperative to reduce it to 2%, a more sustainable level for households and businesses. Persisting with high rates risks damaging the economic system, increasing borrowing costs for SMEs, and hindering investments. Additionally, high interest rates have already negatively impacted mortgages, reducing household purchasing power and curbing consumption, a key driver of economic growth.
The ECB must address the real economy’s needs
Unimpresa highlights that the current economic scenario demands a more balanced monetary policy. Lowering rates to 2% is not just necessary to prevent potential economic stagnation but is also essential to support recovery in key sectors that show signs of slowing down. Spadafora states, “Households and businesses need relief: cheaper credit, lower rates, and financial stability are the pillars of a solid and lasting recovery.”
A decisive shift in the ECB’s approach would be a positive signal for the entire European economy, demonstrating greater attention to the real needs of the economic and social fabric.