(Adds further quotes, context)
By Federico Maccioni
CERNOBBIO, Italy, April 1 (Reuters) - The outlook for
the Italian economy is improving but higher interest rates
designed to curb inflation could pose a threat to growth,
Italy's economy minister said on Saturday, sending a warning to
the European Central Bank (ECB).
"Fighting inflation with monetary policy is not enough,
recession cannot be the price paid for fighting inflation,"
Giancarlo Giorgetti said.
Giorgetti is from the League party which last month
criticised the ECB for pushing ahead with its latest 50 basis
point rate increase despite turmoil in the banking sector.
Speaking to the Ambrosetti business forum, Giorgetti
confirmed that improvements in the first half of the year would
allow Italy to slightly upgrade its official forecast for
economic growth of 0.6% in 2023.
He added it would be difficult for the European Union when
it comes to reintroducing budget rules that remain suspended
until the end of 2023.
"The political climate of relaxation generated around
budgetary rules in these crisis years by COVID and war will not
make it easy to return to any rule," he said.
(Reporting by Giancarlo Navach and Federico Maccioni,
Writing by Keith Weir
Editing by Emelia Sithole-Matarise and Mark Potter)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.