After the referendum Volker Wieland sees Italy in need for ESM program ("Handelsblatt")

After Italy has voted against a constitutional reform Volker Wieland sees a great need for action. The next government should provide the economic policy framework for sustainable growth, he said in an interview with "Handelsblatt". According to Wieland, the government should apply for an ESM program, which would work as a protective shield against an Italian debt crisis.

Italy had financed its high debt level by raising taxes, however, in doing so, Italy had thwarted its economic performance, Wieland said. Monetary policy could not generate sustainable real growth nor higher employment.

In Wieland's view, the expansionary monetary policy of the European Central Bank (ECB) is not adequate. To him, the ECB is at full speed whereas it should slow down its monetary policy.

Handelsblatt: Volker Wieland: "Italien sollte ein Hilfsprogramm beantragen"