ECB’s Panetta: Inflation “Back Under Control,” Priority Now Is Robust, Lasting Growth

28 October 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Fabio Panetta said on Tuesday that inflation was back under control, leaving robust long-term economic growth as the main priority.

In a speech at the 101th World Savings Day event in Rome, Panetta, who heads the Banca d’Italia, said that with inflation now under control, there was a complex global landscape of renewed geopolitical tensions and rising protectionism weighing on trade and cooperation.

“This is fueling fragmentation and uncertainty, with antagonism often prevailing over constructive dialogue,” he said. “In this scenario, the priority is clear: to pursue, with determination, robust and lasting growth, underpinned by investment, innovation and productivity.”

He noted that while the recent US-EU trade deal had eased uncertainty, effective average tariffs had risen considerably. Still, the direct impact on Italian exporters and their supply chains remained “limited overall,” he said.

Panetta highlighted that Chinese exports to the US fell by €43 billion in the first seven months of 2025, while shipments to Europe rose by €34 billion.

“While not extraordinary, the rise is remarkable, and largely affects the high-tech sectors; it also confirms the risk – already pointed out in the past – of China broadly redirecting its production towards European markets,” he said.

The strengthening of the euro was also significantly impacting the price competitiveness of European products, he said.