US Tariffs Predicted to Hit Italy and Germany Harder, Says Panetta

Rome: The impact of new US tariffs is expected to be more severe on Italy and Germany than other EU nations, as stated by Bank of Italy Governor Fabio Panetta at an Italian brokers forum on Saturday.

According to Ansa News Agency, Panetta explained that the tariffs announced by the Trump administration could reduce the EU’s GDP by “half a percentage point,” with the effects being more pronounced for Germany and Italy due to their significant trade relationships with the United States. In his speech at Assiom Forex, he elaborated that if the tariffs were implemented in the pre-election phase and were met with retaliatory measures, global GDP growth could decline by 1.5 percentage points. The US economy, he noted, could see an impact exceeding 2 points.

Panetta also addressed the ongoing banking mergers, stating that their outcomes would depend on the market and shareholders’ decisions. This comes amid UniCredit’s bid for Banco BPM and Monte dei Paschi di Siena’s interest in Mediobanca. Despite the challenges, he expressed optimism, asserting that modest growth for Italy and Europe is “not an inescapable destiny.”