ECB’s Panetta: Expect a Rise in Protectionism in Next Few Years Due to US Policies

16 January 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Fabio Panetta said on Thursday that US policies would encourage an increase in protectionism in the years ahead.

In a speech at a conference at the Centro San Domenico in Bologna, Italy, Panetta, who heads the Banca d’Italia, said that ‘global trade is fragmenting and is increasingly being used for strategic purposes, especially in the race for technological dominance.’

An increase in protectionism could be expected in the years to come, he said.

Breaking economic and trade links would ‘further weakening the multilateral framework that has underpinned global economic development since the end of World War II,’ he said.

The consequences of this would go far beyond the economic and financial system, he said.

‘That said, it is necessary to correct the imbalances that have emerged over time in order to prevent deprivation and frustration from fuelling tensions and conflicts’, he said.

Related articles:

• ECB’s Panetta Proposes Creating a European ‘Common Spending Programme’
• ECB’s Panetta: Need to Normalise Policy to Neutral or ‘Even Expansionary Territory’
• ECB’s Panetta: Dividing Economy ‘Into Rival Blocs Would Do More Harm Than Good’