March 20, 2017 – Rai News 24 aired an interview with SEP Scientific Council member Stefano Manzocchi, in which he discusses recent international economic developments. The lack of trust between Germany and Italy threatens economic coordination within the euro area, and much of the problem is rooted in Italy’s high public debt. Manzocchi argues that this is an issue the government will have to deal with sooner or later. Quantitative easing cannot last forever, and the European Central Bank can only keep rates low for so long, especially if inflation picks up in countries other than Italy. Public debt poses a source of instability not only for Italy, but also for Europe as a whole. However, in order to recover, investment is needed, and global geopolitical developments have proven an obstacle in this area.
- The original interview (in Italian) is available from Rai News 24.