Italian banks and businesses were put on notice on Thursday that they must modernise corporate governance practices, boost efficiency through mergers and deliver better services to customers if they wish to be internationally competitive.
The warning came in a hard-hitting speech from Mario Draghi, the reforming governor of Italy’s central bank, who also bluntly told the nation’s politicians to stop interfering in the Italian banking sector.
Addressing the Bank of Italy’s annual meeting, Mr Draghi said the centre-left government must lower taxes, cut public spending and reform the pension system in order to reduce Italy’s crushingly high public debt.
His proposals were a challenge both to Italian business and to the ruling coalition of Romano Prodi, prime minister, whose shaky parliamentary majority and internal divisions have restricted its ability to achieve bold reforms.
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