ROME (Reuters) – Italian Prime Minister Mario Draghi said on Thursday he saw “plenty of room” for Italy to use expansionary fiscal policies before creating inflationary pressures in the country.
In a speech to academics, Draghi said it was “very probable” the current phase of increasing public and private debt was not yet over, adding the government was ready to intervene with “conviction” if the pandemic worsened, damaging the economy.
The former European Central Bank chief said inflation within the euro area continued to remain low, necessitating an accommodative monetary policy, but he warned that might not last for ever.
(Reporting by Giuseppe Fonte; Editing by Crispian Balmer)
