ECB/Panetta: The EU Should Establish a Joint Spending Program to Finance Strategic Investments

Forexl - Fabio Panetta, a member of the European Central Bank's Governing Council and the Governor of the Bank of Italy, stated that the European Union needs to establish a joint spending program to finance strategic investments, which are essential for increasing efficiency and keeping pace with the United States.

In his speech at the 20th Spain-Italy Dialogue Forum held in Barcelona, Panetta mentioned that a continent-wide "efficiency pact" could foresee common debt issuance worth 800 billion euros annually for six years by 2030.

He noted, "The increase in debt at the central level will be small and will be used solely to enhance the efficiency of the European economy," adding that such a plan "will limit the investment spending needs of member states and thereby enable them to reduce public debts more rapidly."

Panetta's call follows a 400-page report published in September by his predecessor at the Bank of Italy, former ECB President Mario Draghi, which urged the EU to invest 750-800 billion euros annually.