Patuelli: "Trade wars pose a risk of recession. Panetta: "Dollar uncertainty is an opportunity."

MILAN – Protectionism and tariffs must be "defused" to avoid repercussions on markets and banks and a "new recession." This was stated by ABI President Antonio Patuelli in his report to the ABI assembly. "If trade wars were to develop, markets would suffer, uncertainty for businesses would increase, credit could deteriorate further, and banks would suffer the consequences," he explained. "We would risk a new recession. It is necessary," he added, "to defuse the risks of protectionism and new tariffs, measures as old as the world itself, which penalize free trade, economic and social growth, and global prosperity."

"There are concerns about the repercussions on the economy, international confidence, trade, and energy costs, with the risk of a resurgence of inflation and interest rates. Banks are highly exposed to crises, as the most complex and sensitive links connecting economic factors. Furthermore, we are experiencing an unprecedented period of great uncertainty between the two sides of the Atlantic," Patuelli added in his speech. New opportunities from dollar uncertainty

In his speech, Bank of Italy Governor Fabio Panetta explained that the dollar's new role could represent an opportunity for the euro. Europe has "new opportunities" in the current environment, where "uncertainty is growing about the role of the United States in the global economy, and investors are seeking alternatives to the dollar and American markets, initiating—albeit gradually—a partial reorientation of global portfolios." These are "opportunities that can only be seized by resolutely relaunching the integration project, completing the single market, and adopting common policies for innovation, productivity, and growth," he urged.