Pier Carlo Padoan
Last quote by Pier Carlo Padoan
Pier Carlo Padoan quotes
If 'No' wins it will be more difficult to raise capital.
It's clear that we are in a phase of uncertainty, but the market is already taking into account that uncertainty, to some extent they have priced in that uncertainty, so in reality the markets are giving less worrying signals than it might seem.
We have find an agreement on the fact that if a jurisdiction applies zero tax rates, this can be considered as an indicator of possible unfair practices, but it would not be enough to define a jurisdiction as non-cooperative.
Financial markets have this idea that the referendum is the end of the world. Well, it is not.
If there is a 'No' vote – which I hope will not be the case – it will be basically a missed opportunity for the country.
At this moment the bank is preparing an overall plan that I think is a good one.
Just like the problem of bad bank loans must be solved within a reasonable time frame, so it should be for Deutsche Bank's problems.
Growth will be revised down in forecasts the government is about to release as background to the budget law.
We're dealing with them. They are both structural and short term.
Brexit has already had an impact. All international organisations and governments are revising downwards their growth projections due to Brexit-related uncertainty and impact on demand. So this is already a problem.
It is not if it is complemented by structural reforms, which we are doing in the country to raise growth potential, and also a link between the eurozone and the single market. In other words, I would favour more integration not just in the eurozone, but also in Europe in a wider sense.
This is just a mechanism to start off. It has a leverage power. And as confidence grows, the market will generate prices that will make those resources available. And, of course, nothing prevents the private sector to decide to further provide resources with the funds. So to make it larger if needed.
Well, first of all, this is a private sector endeavor. The private sector, the private banks, and insurance companies, Italians and other countries, have put together resources first of all to support recapitalisation operations in the Italian banking system. And also to provide resources to kick-start the NPL market, which has been stagnant in the country.
In the euro area Germany is growing at a healthy rate – above 2.0 percent – which is good news; but France, which is the second largest economy, will not be growing possibly at all in 2013, and will possibly start growing again in the latter part of this year and Italy continues to be in recession, although this recession is shrinking which means that Italy might see positive growth at the end of 2013.
We believe it has come down a bit, so those risks are smaller, but they are not gone away. If you take the G7 as a group there is a recovery which is firming, with respect to last year's numbers, but this is clearly coming at different speeds, with North America and the United States going faster and the euro area still in a weak spot.
We live in very difficult times. I believe we can define this a critical moment. The situation in the euro area is rapidly deteriorating and contagion is spreading. Policy continues to be behind the curve. Not only in the euro area, also in the United States. So we think that swift and decisive action is needed to avoid the worst. But we would also like to say that things can be turned around and the situation could get much better.
We are witnessing a growth slowdown across OECD countries.
Growth looks to be stronger in respect to what we are anticipating in the November economic outlook. It's around three percent from the G7 as a group from which we have to exclude Japan.
Of course the downside of this scenario is that there might be risks on the inflation front.
There are a number of weaknesses which weigh particularly on household behaviour…One is that the housing market has lost momentum, meaning that it's not clear what the dynamic of house prices will be. The other element which weighs negatively on households is the unemployment situation.
The global economy needs some rebalancing in exchange rates, not just the euro which has been overvalued for some time in the past, but also of course the Chinese currency, which has been undervalued for some time and it still is.