VENICE, June 9 (Reuters) - The debt crisis that has plunged Italy into a recession and sent borrowing costs spiralling to record highs last year is not over, Bank of Italy Governor Ignazio Visco said on Saturday.
“For Italy, the emergency is not over,” Visco said in a keynote speech to the Council for the United States and Italy.
He called on Prime Minister Mario Monti’s government to continue with its economic reforms even if they don’t show immediate results.
“Preserving and sustaining fiscal responsibilty is essential, even if at the cost of some short-run difficulties,” he said.
Visco, who is also a member of the European Central Bank Governing Council, reiterated his call for a common oversight of Europe’s banks, even if it means “a shift of some elements of national sovereignty.”
“The reform of economic governance mut be accelerated, in order to break the linkage between sovereign risk and bank risk,” he said. (Reporting by Jennifer Clark)