Arab Today, arab today unicredit ceo europe needs more investment
Last Updated : GMT 07:01:29
Arab Today, arab today
Arab Today, arab today

Unicredit CEO: Europe needs more investment

Arab Today, arab today

Arab Today, arab today Unicredit CEO: Europe needs more investment

Federico Ghizzoni, the CEO of Italy's largest bank
Milan - XINHUA

The European economy is suffering from a lack of investment in both infrastructure and machinery, according to Federico Ghizzoni, the CEO of Italy's largest bank, Unicredit.
"Europe is getting older, including in terms of investment. This is happening in Italy, but also in Europe overall. Investments have decreased everywhere," Ghizzoni said in a recent interview with Xinhua.
Ghizzoni believes that measures must be taken both by European institutions and national governments to improve the situation, also in view of the fact that European infrastructure investment is "poor and dated."
He considers the plan presented by the new President of the European Commission Jean Claude Juncker to be "very important."
The Juncker Plan calls for 300 billion euros (379 billion U.S. dollars) in investments to be mobilized by the European Investment Bank and the private sector, in an effort to reindustrialize Europe.
Specific proposals regarding transport, energy and IT networks will be presented in February 2015. Juncker has stated that any funds used by governments should come from existing resources, in order to avoid violations of the European Union's (EU) budget rules, which prohibit governments from running deficits exceeding 3 percent of GDP.
That figure is to be brought down to zero in the coming years, based on the commitment to maintain fully balanced budgets enshrined in the EU agreement entitled the Fiscal Compact.
Ghizzoni agrees that it is essential to comply with those parameters, and expressed satisfaction that Italy will remain under the 3 percent figure for deficit/GDP this year. His view -- held by many others in the business community -- is that the government should be able to change the composition of public spending in order to free up resources.
Governments in northern Europe, on the other hand, have more flexibility to make investments due to better budget and debt situations, while countries in southern Europe need to continue with reforms. For Italy in particular, Ghizzoni pointed out the well-known difficulties in areas such as the labor market, taxes, public administration and the justice system.
With regard to private investment, the European Central Bank (ECB) has sharply increased its lending to banks since the outbreak of the global financial crisis in 2008 and the subsequent European sovereign debt crisis.
ECB measures such as long-term refinancing operations (LTRO), in which the central bank provides low-cost liquidity to private banks throughout Europe have so far failed to spur a recovery, as economic activity remains stagnant and firms suffer from the significant contraction in recent years.
Predictions for a return to growth in Italy this year have been reversed, as the country is now expected to see a negative GDP figure for a third consecutive year.
The trend is not limited to Italy though, as Germany's GDP has also taken a downward turn in recent months, contracting by 0.2 percent in the second quarter of 2014.
Asked about the limited effect of ECB liquidity operations, Ghizzoni replied: "The latest ECB measures are important, but they cannot be the only ones. The ECB measures by themselves cannot be expected provoke effective and continuous growth. Europe needs investment and reforms."
The other side of the response to the economic crisis by the European Institutions has been to demand "structural reforms" in order to increase efficiency and attract investment.
These reforms have generally involved heavy budget cuts and led to reductions in social expenditures and public investment, as well as tax increases.
Among the effects of these austerity policies have been a sharp increase in unemployment and a decrease in industrial production.
There have been growing calls for relaxing the EU budget parameters and allowing for anti-cyclical public investment, But as stated by Juncker, for now there are no plans to exceed the spending parameters and governments will have to count on internal resources and the attraction of private investment.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today unicredit ceo europe needs more investment Arab Today, arab today unicredit ceo europe needs more investment

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today unicredit ceo europe needs more investment Arab Today, arab today unicredit ceo europe needs more investment

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today US travel restrictions are still 'Muslim ban'

GMT 00:54 2017 Tuesday ,26 September

US travel restrictions are still 'Muslim ban'
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israel builds settlements 'at high rate'

GMT 01:04 2017 Tuesday ,26 September

Israel builds settlements 'at high rate'
Arab Today, arab today North Korea 'more opaque'

GMT 10:50 2017 Sunday ,24 September

North Korea 'more opaque'
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Personality study finds fish have hidden depths

GMT 00:43 2017 Tuesday ,26 September

Personality study finds fish have hidden depths
Arab Today, arab today 'Lady Beast' fights for girl gamers

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers
Arab Today, arab today Botanical gardens a lifeboat

GMT 02:50 2017 Tuesday ,26 September

Botanical gardens a lifeboat
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Chevrolet's first 9-speed auto debuts

GMT 18:58 2017 Monday ,25 September

Chevrolet's first 9-speed auto debuts
Arab Today, arab today Third generation adds more power

GMT 13:40 2017 Sunday ,24 September

Third generation adds more power
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Conditions growing dire    

GMT 09:22 2017 Monday ,25 September

Conditions growing dire    

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:02 2017 Sunday ,24 September

Harry visits mental health hospital

GMT 12:09 2017 Sunday ,24 September

Taxi! Transport gets an overhaul

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday