US tariffs to hit Italy and Germany hard

The impact of new US tariffs will be stronger on Italy and Germany than other EU members, Bank of Italy Governor Fabio Panetta told an Italian brokers forum, CE Report quotes ANSA.

The impact of the tariffs announced by the Trump administration on EU GDP would be "half a percentage point", "with greater effects for Germany and Italy, given the importance of their trade with the United States", Panetta, said in his speech at Assiom Forex.

"According to our estimates, if the tariffs announced in the pre-election phase were implemented and accompanied by retaliatory measures, global GDP growth would fall by 1.5 percentage points.

For the US economy, the impact would exceed 2 points".

Panetta went on to say that the outcome of banking mergers would be decided by the market and shareholders amid UniCredit's bid for Banco BPM and Monte dei Pasch di Siena's for Mediobanca.

He also said that modest growth for Italy and Europe was "not an inescapable destiny".