MNI BRIEF: ECB Has Firepower To Achieve Goals: Panetta

The European Central Bank will need to recalibrate its policy tools in December as it is clear "stimulus so far has not been sufficient to make progress towards our aim in a sustained way," Executive Board member Fabio Panetta said in an interview with Expresso published Friday, noting that dealing with the second wave of Covid infections needs the correct policy mix - with health and fiscal measures key.

Panetta said there is still plenty the ECB can do through asset purchases and financing support, noting there should be no doubt as to its commitment to "bring inflation back to our aim" when the recovery gets underway.

Asked whether the ECB should consider debt forgiveness, an idea floated by Italian politicians amongst others, Panetta said "doing so would contravene the Treaties". "Only growth can protect us from debt," he added.