Overview

• Panetta warns recent US tariffs could reduce global GDP growth by nearly one percentage point over two years; US output may face up to twice that impact.
• Italy’s economy shows improving fundamentals including robust bank capitalization and higher employment; it remains challenged by high public debt, stagnant productivity and real wages below 2000 levels.
• The Bank of Italy forecasts 2025 growth at 0.6%; the ECB appears poised to cut interest rates toward expansionary territory ahead of its June meeting.
• Panetta proposes issuing a European public bond to finance strategic investments and establish a common benchmark for the EU financial system.
• He cautions that volatile cryptocurrencies and stablecoins pose risks to financial stability and urges tighter EU regulation and deeper capital market integration.