The European Central Bank’s latest interest-rate hike won’t support the euro-area economy, one of the members of Italian premier Giorgia Meloni’s cabinet told Ansa newswire.
(Bloomberg) — The European Central Bank’s latest interest-rate hike won’t support the euro-area economy, one of the members of Italian premier Giorgia Meloni’s cabinet told Ansa newswire.
“This new decision — taken I believe by a majority and therefore opposed by some — will not, I believe, help the economic recovery of Europe,” Industry and Made-in-Italy Minister Adolfo Urso was cited as saying.
This isn’t just a problem for Italy, but also other euro-area economies, he said, adding that “Germany is already largely in recession, and with it, other countries linked to the German system such as the Netherlands.”
The remarks by a member of Meloni’s Brothers of Italy party are in line with his call ahead of Thursday’s rate decision that the ECB should call a halt to its policy of aggressive interest-rate hikes.
Higher rates are squeezing businesses and households, and adding to government borrowing costs too. Italian growth momentum has stumbled, with a factory downturn pulling down gross domestic product in the second quarter.
The Italian government has repeatedly attacked the ECB over its rate hikes.
–With assistance from Craig Stirling.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.