Learning Paths » 5C Interacting
Anlysis
by - (2011-10-05)
Up to 5C - The European Central Bank's Letter
This is a letter sent by Trichet and Draghi to the Italian Prime Minister, where they explain their concerns about italy in relation with UE eonomy, in this letter they also give some advice to reinforce Italian economy.
The letters is organised into four parts each one playing a specific function:
First Paraghaph:
-The senders Trichet and Draghi inform the Prime Minister that after the European Central Bank meeting comes to life that the confidence of investores must be restored.
-Italy should reinforce the importance of its sovraign signature
-That the balanced of the budget should have been done before the 2014.
In the second and third paragraph Draghi and Trichet point out three objectives and suggest three way to reach them.
Second Paraghaph:
Increase the italian potential growth:
-An important and credible reform strategy: liberalisation of public service
-Reform the wage bargaining system; EXAMPLE: trade union and industrial business assocations
-Rules which regulate hiring and firing should be reviewed
Third Paragraph:
Ensure the sustenibility of finances:
-To anticipate of one year the objectives decided for 2014
-Deficit reducing clause
-To check commercial debt and expenditures
Fourth Paragraph:
-Public administration review
-Performances indicator in public industries
The letters end with the best wish of the European Central Bank.