ECB’s Visco says negative interest rates can foster financial risk-taking
- Full employment may only be possible with negative rates
- Europe should stimulate public and private investments
- Eurozone economies may be permanently hurt by financial crisis
- urges common EU budget for defence, research, research and infrastructure.
- Italy needs to improve infrastructure and adopt new technology
- needs betters schools and judicial systems
Bank of Italy head and ECB governing council member speaking in Bologna last night Visco where he said the pooling of budgets in these key areas should be a step towards the eventual creation of what he described as “political union” in the region, without elaborating on what such a union would entail.
Much could be gained today if EU member states pooled together our public budgets in broad areas from infrastructure investments to research, security and defence
Reuters has more here