Padoan says banks must make most of ECB measures

Italy, Europe can 'scrape along' or boost economic growth

(ANSA) - Milan, June 12 - Italian banks must take advantage of reduced market stress and new measures introduced by the European Central Bank to "give new impetus" to growth, Economy Minister Pier Carlo Padoan said Thursday.

Speaking to a conference on pensions, Padoan said that the banking system demonstrated "enormous capacity for strength" in the face of the global financial crisis and Italy's economic downturn. Now, it must do more to encourage economic growth, taking advantage of measures announced last Thursday by the ECB to boost lending to business, said Padoan.

He added that the government is working on some "measures to change the incentive system" within the economy that he said he hoped would be passed "in the coming days". Concluded Padoan: "The Italian and European economies are faced with two options for the next five to 10 years: scrape along or jump on a path of growth and accelerate the expansion and creation of new jobs".