CLaudio Borghi Vs Daniele Franco: growth and debt, a step forward. And the debt of the RRF … ..

21 April 20213 years ago babelfish

Hearing of Daniele Franco, Minister of Economy, before the joint commissions of the 5th Chamber and 5th Senate. Borghi intervenes and asks some statements and questions:

first of all it is relieved that, finally, an economy minister admits that debt is reduced not with austerity, and by cutting investment, but with growth;
growth can only occur with the end of the lockdown;
given that few, indeed no European country, for now, has stated that it will use the debt of the RRF to finance itself, if our national debt were competitive as costs with that of the RRF, given by the commission, what would Italy do? Would he use the RRF or not.

Franco replies by confirming that it is necessary to spend now to grow, even if in the future, when the recovery is strong, it will be necessary to gradually recover from the deficit and control the debt-to-GDP ratio. A strictly Keynesian view, we would say. The use of the RRF's debt resources also depended on the interest rate. You have to be strictly pragmatic and choose the cheapest source. We point out that, however, interest rates should be compared with the debt parity, and the debt linked to the RRF is a debt with privilege compared to that of BTPs. This point has not yet been clarified.

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The article CLaudio Borghi Vs Daniele Franco: growth and debt, a step forward. And the debt of the RRF… .. comes from ScenariEconomici.it .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/claudio-borghi-vs-daniele-franco-crescita-e-debito-un-passo-avanti-ed-il-debito-del-rrf/ on Wed, 21 Apr 2021 10:00:14 +0000.