ROME. The EU must move from a growth model based on exports and external demand to “strengthening internal demand and the single market”. This is what the governor of the Bank of Italy Fabio Panetta states according to which “trade disputes and global shocks make this growth strategy less sustainable and more risky”. According to the governor, China, one of the “main European outlet markets” is reducing trade openness as well as making its producers increasingly competitive.
The governor then added how “Europe must channel in its favor the collective strength of the countries that compose it2 and quoted the economist (and governor of the Bank of Italy as well as President of the Republic) Luigi Einaudi: “The need to unifying Europe is evident – he wrote – Existing states are dust without substance. None of them can bear the cost of self-defense. Only unity can make them last. The problem is not between independence and union; it is between existing united and disappearing”. For Panetta, therefore, Einaudi’s warning “is tremendously relevant in the times of fragmentation and war that we are experiencing. The answers we give will have to be up to the challenges we face.”
Panetta then invited us to welcome regular immigrants. In the European Union “many member states are facing the challenge of an aging and declining population” and “to avoid a sharp decline in labor supply and therefore potential growth, a significant effort is needed to allow regular and controlled entry of immigrants and their integration into the labor market”. “The issue of migratory flows – he continued – cannot be addressed by Member States individually. A common immigration policy at European level is necessary both to avoid imbalances between Member States in the face of the asymmetric pressure exerted by massive arrivals from Southern countries, and to coordinate regular entries for work reasons”. Furthermore, the governor further explained, a common policy “is essential to attract qualified workers, capable of contributing to innovation in production systems also as entrepreneurs”.
The governor also recalls that the Green Deal industrial plan for the net zero emissions era launched by the European Commission in 2023 is based on four pillars: reduction of bureaucratic burdens, increase in skills, commercial initiatives and subsidies. The “deterioration to the bottom” competition that this Commission program encourages would therefore cause “a limited effectiveness of interventions and a lower gain in competitiveness for the European production system as a whole”. Panetta in his lectio magistralis for the awarding of the honorary degree in Legal Sciences, Banking and Finance by the University of Roma Tre, adds that the ‘recipe’ for strengthening Europe requires “expanding public and private investments in advanced technologies , bringing them to the levels of the most active countries and enhancing cutting-edge European centers in sectors such as artificial intelligence, robotics, digital and communication infrastructures, space exploration and biotechnology”.
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Representatives of Azerbaijan and Finland discussed preparations for COP29
– 2024-04-24 03:14:46
Representatives of the COP29 Chairmanship apparatus discussed the preparation process for COP29 with the delegation of the Permanent Mission of Finland to the OSCE, Day.Az reported on Friday with reference to a member of the COP29 Chairmanship apparatus, representative of the National Hydrometeorological Service under the Ministry of Ecology and Natural Resources of Azerbaijan Fuad Gumbatov.
“We had a very substantive discussion on the preparation process for COP29 with the delegation of the Permanent Mission of Finland to the OSCE, led by Ambassador Vesa Hakkinen,” Humbatov said.
Explaining the importance of this meeting, he mentioned that Finland will chair the OSCE in 2025, and Azerbaijan is cooperating with this international organization on various programs.
It should be noted that the 29th session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP29) will be held in Baku on November 11-24, which will bring together the leaders of most UN countries to discuss ways to solve the problems of climate change on the planet.
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Representatives of Azerbaijan and Finland discussed preparations for COP29 – 2024-04-24 03:14:46
US real estate prices. The inflation bomb is ticking noisily
– 2024-04-24 04:39:53
/View.info/ Much has been written about inflation in the USA, I want to dwell on the calculation methods and pay attention to the American real estate market.
The US Department of Statistics and Economic Analysis measures the extent to which inflation affects household personal spending using the Household Personal Consumption Index. (Core PCE Price Index). A formula for calculating PCE “equalizes” the costs of electricity and daily food items in order to reduce the variability of the results. Traditionally, the Consumer Price Index (CPI) was measured with this parameter, but in the first decade of the century, the Federal Reserve switched to PCE.
The algorithms for calculating both indicators match on a set of parameters, including personal expenses for:
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Rent/mortgage and bills
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Eating out
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Medical, insurance and transport
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Education of children and their own education
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Vacation and any expenses abroad.
And now the most wonderful of calculation methods! Rent/mortgage costs are about 20% of Core PCE and inflation is 40% of Core Consumer Price Index (CPI).
And now some strange statements from today’s news:
Home prices in the US will jump this year and next by 10% thanks to the persistent deficit, Goldman Sachs predicts. According to their forecast, about 5-15% of current house price and rent growth will affect future housing inflation over the years.”
Overton’s window can already be heard creaking open:
“The Federal Reserve’s preferred gauge of inflation needs to reach a maximum of 2.8% to create a sense of discomfort among US monetary policymakers, according to a Reuters poll, which also showed the central bank would tolerate that level for at least three months before it takes effect.
James Knightley, ING’s Chief International Economist, says: “I put 2.8%, but to be honest, anything above 2.5% is a concern. But what is more important is how sustainable this will be, not the specific figure for a month. It should be seen in the context of what is happening with the growth of the economy and the labor market. If the base RSE is above 2.5% at the beginning of 2022, we will have to seriously think about an accelerated reduction of quantitative easing with an increase in interest rates by the end of the year”.
Translation: V. Sergeev
#real #estate #prices #inflation #bomb #ticking #noisily
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US real estate prices. The inflation bomb is ticking noisily – 2024-04-24 04:39:53