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The recovery will be complicated
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Thus the governor of the Bank of Italy, Ignazio Visco at the Trento Festival of Economics, underlining that with the pandemic it became clear the need to have an "evolved" system of social safety nets.
"We have to change both the demand and the supply of work. In a state of crisis like this, we need to give support to those in difficulty, that is, businesses and workers, whether they are self-employed or precarious," he said.
"The system is very fragmented and it is evident that we must, in a transition perspective, bear in mind that we must favor the rebalancing between supply and demand and, at the same time, not keep alive the realities that will not be able to be not only competitive but unable to contribute to society. But those who lose their jobs will have to be protected by an extraordinary fund that must be considered in a reform of the social safety nets ", added Visco.
We need a "responsible state", "capable of understanding", to accompany the "post-pandemic transition", he pointed out. For example, "the acceleration linked to digitization will have to be managed, an economy in which businesses and individuals will operate in a different way from the past, many will have to close and many will have to enter the market and then grow. How to ensure that this happens without trauma or with the minimum of trauma and guaranteeing people and allowing turnover and productive restructuring "is the role that the state must now play.
After the pandemic - he continued - there will be a lot of restructuring of production, "if entrusted only to market forces, there will be many risks, it must be guided not left to itself, in guiding it you cannot replace the production sector" but it must "ensure that change takes place with the awareness that we need to dialogue with businesses and work". "The system is very fragmented and it is evident that we must, in a transition perspective, bear in mind that we must favor the rebalancing between supply and demand and, at the same time, not keep alive the realities that will not be able to be not only competitive but unable to contribute to society.But those who lose their jobs will have to be protected by an extraordinary fund that must be considered in a reform of the social safety nets ", added Visco.