He cited good connectivity, international universities and an attractive fiscal discipline as the top-selling points of Milan. And not even the so-commonly mentioned weak banking system nor political instability make Milan less attractive, the ambassador said.
“It’s so commonly mentioned when we talk about Italy that it is no longer credible,” Terracciano, said about the financial and political concerns overshadowing the Italian economy.
“Sometimes it really sounds like an easy way to fend off a challenge coming from Milan or Italy…If you look at the situation here (in the U.K.) I don’t know what could be considered more stable, after all, yes we have changed prime minister but the party in government is still the same for the last four years and policies, reforms, programs adopted have been implemented,” he said.
Terracciano also noted that Italy has solved the big threats to financial stability by rescuing Monte dei Paschi and the two Veneto banks and also by creating a fund to help banks offload their bad loans.
“NPLs by themselves aren’t a threat to stability….it’s nevertheless a serious story because it has implied a lower growth but it is not a problem of instability or safeness of the banking system,” he added.