Public debt must be reduced credibly, gradually and steadily. Only in this way will the interest demanded by the market decrease, while expanding the government's room for maneuver for social measures. This was stressed by Bank of Italy Governor Fabio Panetta. "Italy has a high public debt, the result of imbalances accumulated over many years. Reducing it requires both short- and medium-term planning of spending. The more credible the reduction path is, the less compensation investors will require to hold the debt". This "will increase the room for maneuver for fiscal interventions of a social nature and for dealing with future unforeseen situations," the governor pointed out, explaining that "we will only be able to get rid of the burden of debt by acting at the same time on the growth front." That of debt, the governor concluded, "is a problem we must solve and it is right that it be done quickly".
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