Bank officials sternly regarded as harboring deep-seated dedication to the financial sector.

In a discussion with Italian newspaper La Repubblica, Jean-Claude Trichet, former president of the European Central Bank, expressed his belief that austerity measures are essential for increasing confidence and fostering economic recovery.

Trichet argued that anything that increases household, business, and investor confidence in the sustainability of public finances is beneficial for growth and job creation. He emphasised the importance of states taking their responsibilities in managing public finances.

Contrary to the concerns that austerity measures could lead to stagnation or recession, Trichet remained confident that they would not cause such effects. Instead, he stated that policies inspiring confidence would strengthen economic recovery, not hinder it. This viewpoint was expressed by Trichet in June 2010.

Trichet's stance remains that cutting spending is a preferable method for reducing deficits. He believed that austerity measures, in the context of crisis countries, would help increase confidence and thus foster economic recovery.

During the early phase of the Eurozone crisis, Trichet, as President of the European Central Bank until late 2011, supported strict monetary policies. However, he was criticised for initially not providing sufficient liquidity to crisis countries, which influenced the push for austerity measures. This criticism was later addressed by Mario Draghi, who expanded ECB interventions after Trichet's term.

Trichet's response to La Repubblica's question about the risk of recession and deflation following budget cuts in crisis countries was clear and decisive. He indicated that he did not believe austerity measures would cause stagnation or deflation in crisis countries.

In the context of the Italian economy, Trichet continues to advocate for Rome to keep its commitments regarding austerity measures. He believes that these measures are crucial for maintaining confidence and promoting economic growth.

This discussion on Trichet's legacy and his views on deficit reduction strategies in the Italian economy serves to debunk myths about the effectiveness of austerity measures in reducing deficits and fostering economic recovery.