A year ago, the government with the most 5-star group was just about to emerge. Bank of England Governor Ignazio Visco decided to read his final considerations. The markets did not react well. The range has exceeded 300. Today, the spread is still about 290. One year ago, the government with a majority of five stars had to be formed. Italian Governor Ignazio Visco decided to read his final considerations. The markets did not react well. The spread has exceeded 300. Twelve months later it's about 290. A year ago. But this clock shows that the problems of Italy are still far from being solved. This difference tells us that the state, we citizens, have to pay 3% more than the Germans pay interest on the debts of those who lend them money. Interest is similar to those in Greece, uncomfortably superior to those in Spain and Portugal.
In 2018 Visco was clean in marking the market reaction to Italian political evolution as emotional and unjustified. He talked about the foundations of the country and its efforts to reach a minimum of promise that promises good. Twelve months later, Visc's words resound in the silence of public entrepreneurs and bankers, economists and senior state officials. The silence of the list of blue list of Final Conclusions of the divided listeners describes the steps of the ruthless analysis of the governor. And this time, reactions to the market are a concern. True, there is a less favorable international economic situation. There are trade tensions between China and the US, the two largest industrial forces in the world. But spread also tends to the prospects of growth. These state bond market tensions increase interest rates. And they are starting to lessen loans to businesses and citizens alike. But there is an illusion of scattering: that you can use the money you do not have.
This brings us to the notion of expansion restrictive. Spending on the deficit, increasing the deficit in search of instant remuneration can have the effect of increasing the interest we have to guarantee to those who lend us money. This can undermine the confidence of investors, families and businesses. Without trust, investment will fail. A maneuver created to ease the economy would turn into its opposite. As a result, taxation can be deducted from VAT, reduced taxes, but if resources are found to cover the budget gap that would be created. The tone of the governor is not a tone of alarm or an indictment. Indeed, the trust of the state servant in a country with a competitive industrial system, families with enviable savings shares, a more solid banking system shines through. But he has to make decisions. How to remain anchored in Europe that has represented and represents a challenge and at the same time providing for the future, avoiding the temptation to do so or to treat it as an opponent. It is not the fault of Europe if Italy's growth is weak. Other member states have been able to do better. By accusing the euro of the delays we have faced with technological changes and opening up the market, we can provide relief to those who found the enemy with whom to take it, but it would be a mistake. This also raises doubts about our country's ability to cope with its delays. Like technology, infrastructure and public services, the environment is certainly not conducive to enterprise, work, and productivity. Last but not least, the demographic of the old country, and that in the next 25 years, over 65, reach 33% of the total population. Markets look at it. Not on promises.