Inflation in the euro zone is not yet at the level desired by the European Central Bank. That says Klaas Knot, the highest boss of De Nederlandsche Bank.
The ECB has been striving for years for inflation to be just under 2 percent. Knot states in a Sunday published interview with the Italian newspaper Corriere della Sera that the ECB is now counting on a number closer to 2 percent than we have seen in the last five or six years.
“The only thing we can do is keep pressure on,” said Knot. “We must ensure that the economy continues to perform, helped by a high occupancy rate. Ultimately, according to him, growth figures will have to ensure that prices will also rise.
Knot also commented on the situation in Italy. According to him, the introduction of a wealth tax could help to reduce the large debt mountain of the country.
Knot points out that Italy has problems with the public sector, but that people in the country also have a relatively large amount of private assets. Japan and Italy have the highest net private equity of all G7 countries. He does emphasize that it is a decision of politics in Italy.