To reduce demographic imbalances especially in the future, a “rational” response may be the introduction of measures that favor the entry of regular foreign workers. The governor of suggests it Bank of Italy Fabio Panetta, speaking at the Rimini Meeting. «The demographic projections indicate that in the next decades the number of European citizens of working age will decrease and the number of elderly people will increase” says Panetta explaining that “this dynamic risks having negative effects on the stability of pension systemson the health systemon the propensity to undertake and innovate, on the sustainability of public debts. To counteract these effects, it is essential to strengthen human capital and increase the employment of young people and women, especially in countries – including Italy – where participation gaps job market by gender and age are still too large”. “Even measures that favor an influx of regular foreign workers – continues the Governor – constitute a rational response on the economic level, regardless of other considerations. The entry of regular immigrants must be managed in a coordinated manner within the Union, balancing production needs with social balances and strengthening the integration of foreign citizens in the education system and in the job market.”
Reforms needed for the future of the European Union
To overcome its weaknesses and keep pace with global progress, «the European Union will have to start deep reforms and make significant investments in the coming years.” This was stated by the governor of Bank of Italy Fabio Panetta at the Rimini Meeting. Among the reforms, the number one of Bankitalia highlights «the importance of creating a common fiscal capacitywithout which the current European governance – characterized by a single monetary policy and fragmented budget policies at national level – remains unbalanced”. “The idea that the EMU can function effectively without a centralized fiscal capacity is simply an illusion, and must be overcome”, Panetta points out. “A common fiscal policy”, the governor highlights, “would correct this imbalance and strengthen cohesion between member countries, facilitating the implementation of strategic investments on a large scale.”
The impact of the PNRR on the Italian economy
«I believe that the conditions exist for the Pnrr have positive effects on the Italian economy”, but will depend “on the quality of the reforms that accompany it, on their effects on productive activities, on competition and theinnovation” The governor of the Bank of Italy Fabio Panetta at the Rimini Meeting. «We have estimated that from 2021 to 2026 the PNRR could produce an effect of 9 percentage points on GDPand also a permanent income effect of 4 percentage points”, underlines Panetta, for whom the Plan “could have a permanent and persistent effect on theItalian economy».
The future of the European Union and the NGEU programme
«A test bench for the new European legislature will be the ability to confirm the use of draft common expenditure and to move towards a more complete and more integrated union, both financially and fiscally”. This was stated by the Governor of Bank of Italy Fabio Panetta, speaking at the Rimini Meeting. According to Panetta, «since the program NGEU will end in 2026, a not too distant horizon, it is necessary to start a reflection on the next steps”. In his opinion, “the design and scope of future programs will depend largely on the success of those underway, in particular on the ability of individual countries to profitably use the funds made available by their respective recovery and resilience plans».