Italian Prime Minister Giorgia Meloni has criticized the European Central Bank (ECB) for repeatedly raising interest rates, writes Politico.
Meloni pointed out that “treatment” in this case is worse than “disease”.
In June, the ECB raised the interest rate to the highest level in the last 20 years. Previously, it was so high in May 2001, and a further increase in interest rates next month is also being considered.
Addressing the Italian Parliament, Meloni said that it is right to fight inflation decisively, however, the ECB’s simplified approach to raising interest rates does not seem to be the right way:
“One cannot fail to consider the risk that the constant increase in interest rates is a more harmful cure than the disease.”
Several members of Meloni’s government have reacted critically to ECB President Christine Lagarde’s announcement on Tuesday, the 27th of June, that interest rates will likely continue to rise.
Meloni’s deputy, Italian Transport Minister Matteo Salvini, called the decision senseless and harmful. He asked if Lagarde herself has a mortgage loan with a variable interest rate and if she knows how much the payments increase each time. Salvini also added that he would look for an opportunity to meet with Italy’s representative on the ECB’s board.
Italian Foreign Minister Antonio Tajani told that Lagarde’s statement upset him and that he does not agree with this decision. “I don’t think continuing to raise interest rates takes us in the direction of growth.”