Overview

• Officials warned that sustained U.S. auto tariffs could shave half a percentage point off euro-area growth through 2027 and risk triggering a recession
• Bankitalia governor Fabio Panetta said a weakening dollar creates new opportunities for Europe as investors seek non-dollar assets
• Panetta estimated that a European public bond could cut corporate financing costs by 0.5 percentage points and boost EU GDP by about 1.5 percent
• Finance minister Giancarlo Giorgetti called on banks to refocus on lending to the real economy, earn on interest margins instead of wealth management, and accelerate digital investment
• ABI president Antonio Patuelli and other officials stressed that government, regulators, and banks must act in unison under a flexible, pragmatic monetary framework to bolster innovation and resilience