Italy Considering Mini-Bills Was a Mistake, ECB’s Guindos Says
Italy Considering Mini-Bills Was a Mistake, ECB’s Guindos Says
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The Italian government’s discussion of issuing so-called mini-BOTs to pay some of its bills “was a mistake,” according to the European Central Bank’s vice president.
ECB President Draghi “said that if it’s legal tender, it’s illegal and if it’s debt, then it piles up more debt,” Luis De Guindos said in an interview with Italy’s Corriere della Sera. “Also, in my view, the worst consequence of this kind of decision is that it destroys trust.”
Guidos urged Italy, which has been in repeated disputes with the European Union over its spending plans, to agree on clear objectives with its European partners. “This is a bilateral game, so it’s from both sides, Guindos said. “Italy is not a very vulnerable economy on financial grounds, if you take into account the net investment position and other factors.”
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--With assistance from Alessandro Speciale.
To contact the reporter on this story: Maria Ermakova in Milan at mermakova@bloomberg.net
To contact the editors responsible for this story: Lukas Strobl at lstrobl@bloomberg.net, Namitha Jagadeesh, James Amott
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