An act of desperation

The left-liberal daily La Repubblica sees the cut in prime rates as a feckless act of desperation. Commenting that the stock markets have failed to respond positively to the move for fear of an impending recession, the paper continues: "After frantic deliberations, the heads of government have decided on a step the likes of which we haven't seen since September 2001 when the world stared in disbelief at the carnage of the Twin Towers. But this act of desperation has fallen on deaf ears. ... It seems clear that the measures taken by the banks are insufficient to address both the financial crisis and recession. For the men at the International Monetary Fund the hour seems to have struck to accompany money manoeuvres with injections of public funds into the real economy. The next dossier to be dealt with by Western governments may well be an incentive package for stimulating the economy."

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