Yet, the main challenge is posed by the developments in the real economy. It is here that we must exercise our ingenuity. The business environment must be made more conducive to private investment. And investment in infrastructures has to return to be high in the policy agenda.
In the euro area, policies should aim at keeping the cost of capital low, developing capital market sources of finance to complement bank loans, implementing structural reforms to improve expectations of more favourable aggregate demand going forward, reducing policy uncertainty. 21. In Italy, the most urgent interventions are those which safeguard legality and efficiency in public administration.