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PM Meloni-ECB Rate Hikes Not Right Path For Many

ITALY

Speaking in the Chamber of Deputies ahead of tomorrow's European Council summit in Brussels, PM Giorgia Meloni states that the "simplistic approach of hiking rates by the ECB doesn't seem the right path to take for many...subsequent rate hikes may harm the economy."

  • On ESM, Meloni states that it is "pointless to fuel internal debate over ESM reform, we need to focus on comprehensive economic governance negotiations". On 23 June, MNI's Policy team published an article in which sources suggested that the vote on ESM could be delayed until after summer. See article here.
  • Meloni's appointment of ECB Executive Board dove Fabio Panetta as the next Bank of Italy governor will leave a seat open on the 6-member board. By convention one of these is always held by an Italian.
  • On China says that the EU "needs to reduce its economic dependence on China", adding that "China is a systemic rival for Europe".

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