ECB Economist Sees Wage Recovery for Italy by 2027-2028

The European Central Bank's Chief Economist, Philip Lane, has expressed optimism about the Italian economy's ability to recover from current challenges, particularly in terms of wage growth. In an interview with ANSA, Lane highlighted that the resilience of Italy's economy should enable wages to outpace inflation in 2027 and 2028, despite the current impact of high energy prices linked to the Iran war.

Lane noted that the ECB's September projections indicate a positive outlook for Italy, with wages expected to grow faster than inflation during the specified period. He emphasized the "fundamental solidity" of the Italian economy, suggesting that this strength will support an improvement in real wages and living standards in the coming years.

However, Lane also acknowledged the broader economic challenges facing Europe due to soaring energy prices. He cautioned that not all workers can be fully protected from the economic losses caused by these high prices, underscoring the complex nature of the current economic environment.