The Vice-President of the European Central Bank, Luis de Guindos, recently commented on the economic situation in the euro area, highlighting that the expected risks are materializing, in particular due to the lack of recovery in consumption. Regarding the upcoming decisions of the ECB, de Guindos stressed that the news on inflation is positive, but also warned about the need for caution. He stated that the ECB takes into account all the opinions and criticisms received, especially those from Italian politics regarding the prudence in reducing interest rates. He urged Italian and European citizens to maintain a prudent attitude due to the economic uncertainty and the current geopolitical situation.

In an interview with ANSA, de Guindos also discussed the role of banks in the economic maneuver and bank mergers. The ECB will have to express a supervisory opinion on the possible merger between Unicredit and Commerzbank in the coming months. De Guindos argued that banking integration should follow a European rather than national approach. This same spirit should also be applied to the ratification of the European Stability Mechanism (ESM) treaty, since Italy is the only country that has not signed it, thus hindering the strengthening of the safety net for bank bailouts. He reiterated the need for a pro-economic and banking integration approach in Europe.

The ECB also showed openness to banks’ “contribution” to the economic package through measures such as postponing deferred tax deductions and limiting the use of tax losses until 2025, from which the government plans to raise €4 billion in 2025-26. Such decisions fall within the remit of European governments, which have adopted different strategies towards the banking system. However, de Guindos warned that such measures must not compromise banks’ solvency or hinder lending to the real economy. He expressed hope that future legislation would take financial stability into account and described as balanced an earlier proposal that required banks to set aside capital rather than suffer direct withdrawals.