The Italian economy minister criticized a proposal by the center-right coalition ahead of the Italian elections to issue sovereign bonds with small denomination, considering it a parallel currency, which would harm the public accounts, and it is a plan to circulate a convincing parallel currency.
He added that historical experience shows that in these cases in which the state adopts a parallel currency that seriously harms its public funds and growth and stability. Under the proposal, the bonds will be issued after issuing short-term government bonds and will initially enter circulation as payments to firms and individuals owed money by the state.
