The global economic crisis caused by the pandemic coronavirus, played into the hands of the Finance Minister of Italy Roberto Gualtieri, who has been able to strengthen their political positions, according to Bloomberg.
It is from the Gualtieri will depend on the recovery of the Italian economy. He has 75 billion euros, the allocation of which as grants and concessional loans to the most affected businesses has already approved the government. Soon to them may be added another 20 billion.
In addition, the submission of Gualtieri and the Ministry of Finance is the export credit Agency to support exporters with a budget of 400 billion euros. Additional expenditures of the state budget became possible thanks to the European Central Bank launched its quantitative easing program, in which the regulator is accountable to the national Central banks from buying commercial banks government and corporate bonds.
This helps to create demand for the bonds and lower their yield, which in turn reduces the cost of Italian debt and allows the government to borrow more in a crisis situation. In a time when many foreign investors, however, sold Italian government bonds, increasing their yield, transactions of the ECB become the country’s vital, writes the edition.
Buying Italian debt in the framework of the program of quantitative easing was made possible largely thanks to Gualtieri, who led the negotiations with the ECB. Appointing him last year to head the Finance Ministry, the Prime Minister, Giuseppe Conte was counting on the fact that a former functionary of the Communist party of Italy will be able to establish relations with the leadership of the European Union after a protracted crisis caused by the breach of budgetary discipline on the part of Rome.
While the Gualtieri manages to achieve it. Even prosperous countries of Northern and Central Europe, before supporting the plan of the European Commission to issue a total debt to help southern members of the EU, is now ready to take part in it. Thanks to these successes, the Minister became one of the most influential and popular politicians and people of Italy.
However, he is yet to win the trust and respect of big business in his native country. Many of its members strongly oppose the ongoing policy of Gualtieri, trying to achieve greater preferences and subsidies for their companies.
Video, photo All from Russia.