August 12, 2022

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With the anti-proliferation shield there will be difficult items for Italy

The anti-proliferation shield has a very high price for our country.

Let’s see what happens. European Central Bank working on a shield against the spread To prevent the difference from punishing Italy too much.

EPA / OLIVIER HOSLET / ANSA

But Germany fears that countries with high deficits such as Italy So they are encouraged to spend without restrictions.

Germany says no

That’s why you work at Items that could actually plunge Italy into severe austerity.

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The problem is that this strong austerity on the one hand serves to satisfy the most virtuous nations in terms of impotence, But it comes precisely at a time when Italy needs strong public assistance Many families are facing difficulties. Indeed, with inflation soaring and the labor market increasingly deteriorating, the government is called upon to provide exceptional aid. Nevertheless, the European Central Bank reassured the Germans that it is a shield against the spread It would have very clear clauses that would prevent Italy and other high-deficit countries from continuing to spend.

Strict conditions for Italy

As we know high inflation forced Central banks to a sharp rise in interest rates. For the European Central Bank, a rate hike at the moment is more than what has been achieved. But that was enough to alarm the markets and increase the spread dramatically. The rate hike wanted by the European Central Bank and the Federal Reserve seriously threatens to crash and send stock exchanges The world is in a recession. But with such strong inflation, raising interest rates is unfortunately an inevitable path.

The government was forced to cut off

Precisely for this reason, it was believed that an increase in rates also accompanied a shield against proliferation. But of course the countries The “gifted” is as different as Germany, so the long-term effect of all this It could be dangerous austerity that threatens to prevent the government from helping those in need. This is repeated The old problem of forced coexistence in Europe Between countries that differ a lot in economic terms.

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