acri association of italian savings banks 2023 world savings day address by the governor of the bank of italy ignazio visco rome, 31 october 2023 saving, and its natural counterpart, investment, are key factors in a country ’ s balanced development. at individual level, saving makes it possible to transfer resources over time, ‘ putting income aside ’ to meet future needs, such as purchasing a house, children ’ s education and joining a pension fund, to be less vulnerable when times are hard and to look ahead with confidence. the acquisition of adequate financial skills is a form of investment in human capital that can increase the well - being of and the opportunities for people ; it is all the more important in light of the large and rapid changes in financial innovation over the last 30 years, as well as the increasing digitalization of the markets. at the same time, it is the first necessary line of defence for savers who are increasingly required to make complex choices and sometimes to deal with high - risk products. the bank of italy is aware of the importance of financial literacy and has invested a great deal of resources in order to foster and disseminate it. i have often spoken about this, including in the recent past. savings are also, however, and perhaps above all a public good that can generate benefits for the community as a whole through the transfer of resources ‘ in space ’ from households to entrepreneurs and businesses. if they are used well, they make a crucial contribution to a country ’ s economic growth by financing productive investment in physical, human and technological capital. this creates the economic even more than the legal basis for its protection by the public sector. this protection requires, first and foremost, adequate regulation and supervision of the financial system as a whole, since it plays a key role in bringing together the generation and use of savings and in transferring funds from one place to another and from today to tomorrow, ensuring that they reach those who should receive them by removing liquidity constraints. nevertheless, the protection of savings goes beyond regulation. efforts must be made to establish economic and financial conditions such that resources can be used as efficiently as possible, thereby contributing to both the economic development of the country and to the well - being of individual savers. protecting savings aims to increase the capital accumulated by fuelling a virtuous circle in which the subsequent strengthening of economic activity leads to higher employment and income that in turn makes further savings possible, as well as greater consumption. the economic cycle and monetary policy

development persist in some areas. signalling a firm commitment to closing these gaps ( including through a good use of european funds ) would help to boost investor confidence ; this would reduce the yields on public debt. implementing the projects contained in the national recovery and resilience plan ( nrrp ) and the reforms that are part of it, which focus on these delays and on jump - starting the green and digital transition of our economy, offer an unprecedented opportunity. simple, targeted amendments to the nrrp to make it more effective remain possible, though it is essential to proceed with no undue delays. the potential of reforms and the availability of large and innovative investments in italy ’ s tangible and intangible infrastructure go beyond their direct effect on aggregate demand ; they must and they can provide long - lasting stimulus for private investment by italian and foreign companies, which is necessary to boost italy ’ s potential for economic development. above all, we must avoid repeating the mistakes we made in the past when our production system was unprepared for the major changes brought about by globalization and the technological revolution. for this reason, investing is essential, not only to close past gaps, but also to be ready to seize the opportunities of the coming climate and digital ‘ revolutions ’. this is the only way to return to a stable and sustainable growth path with rising employment levels and productivity returning to a sustainable path of stable and balanced growth, which can raise employment levels and push productivity up again. this will also help increase wages and ensure proper work protection, especially for the younger generations, which, incidentally, is the main way to protect savings. in the long run, the return on savings necessarily depends on the medium to long - term economic outlook. the government is not solely responsible for achieving this goal, as it is a collective effort. however, economic policy must set out the general framework, provide incentives and remove any brakes on production, and improve and maintain the quality of public infrastructure with adequate investment. in their turn, firms and households, assisted by reliable financial intermediaries, must be ready to invest in order to grasp the opportunities offered by the market and new technologies. this is in our common interest and we should all be aware of this ; everyone should contribute to this change by looking to acquire new and stronger skills. achieving sustainable economic and social development, protecting the environment and creating jobs all depend on this undertaking. it is necessary to create the conditions for both domestic and foreign savings to find suitable private investment outlets in