The Director General of the Bank of Italy Fabrizio Saccomanni spoke in Florence during the presentation of the report "The economy of Tuscany".
"To reconcile fiscal consolidation and growth is possible, albeit difficult and demanding. I wish to stress that the process can be faster and less painful than is usually thought. A credible adjustment and reform programme would have an immediate positive effect on the financial markets, reducing the burden of servicing the public debt and the cost of capital for private-sector investors, which are closely related today. The reduction in the risk premium on Italian issuers would also benefit banks, which would be able to raise funds at a lower cost and at longer maturities, which would strengthen their ability to support firms' investments and the creation of new jobs. Faster growth, in turn, would shorten the time needed to reduce sovereign debt as a ratio to GDP, thus confirming the sustainability of the process of structural adjustment in the eyes of the financial markets. These scenarios may appear optimistic, but they are within our reach".