European Central Bank (ECB) executive board member Benoit Coeuré said Monday that Italy has "taken fundamental steps" to support growth but needs to undertake "further structural reform" to relaunch productivity, improve the business climate, and set up adequate infrastructure.
He also said countries who stretch the rules too much undermine their own credibility. "Fiscal room for manoeuvre should be used wisely," he said. Countries that don't need the wiggle room "shouldn't bend the rules", he said. He said stretching the rules too much undermines their credibility.
"Economic and fiscal policies need to be used in a more determined way so as to reduce structural unemployment and boost the eurozone's growth potential," he said. He cited Premier Matteo Renzi's Jobs Act labour reform and measures to rid Italian banks of non-performing loans (NPLs) as positive measures.
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