Fabio Panetta, a member of the European Central Bank's Governing Council and Governor of the Bank of Italy, stated on the 7th in Rome that the economic outlook for the eurozone remains fragile. Speaking at an academic conference on the challenges of monetary policy transmission, he called for a forward-looking approach to monetary policy formulation, emphasizing the need for stress testing and review under multiple hypothetical scenarios.

In his keynote address, Panetta pointed out that the global economy has entered a new phase that could be termed the "Great Reconfiguration." He stressed that, against a backdrop of deep geopolitical and economic structural adjustments and intertwined external uncertainties, the recovery momentum in the eurozone continues to face multiple risks and vulnerabilities.

Consequently, Panetta reiterated that when the European Central Bank assesses and determines the path for its next phase of monetary policy, it cannot rely solely on a single baseline forecast model. Instead, it must comprehensively evaluate its policy tools within a broader range of macroeconomic scenarios. This approach is essential to ensure policy flexibility and resilience, thereby effectively addressing the long-term challenges posed by the global economic transformation.