Protectionism: A Misguided Solution

European Central Bank policy maker Fabio Panetta criticizes the move towards blanket trade barriers, warning they could harm more than help. Amid U.S. plans under President Trump to introduce tariffs, Panetta highlights the inadequacies of protectionist measures in solving economic challenges.

Fabio Panetta, a member of the European Central Bank, has raised concerns about the potential damage of implementing blanket trade barriers. Panetta suggests that such indiscriminate measures could prove detrimental without effectively addressing underlying economic issues.

His comments surfaced as incoming U.S. President Donald Trump plans to impose tariffs on a broad range of imports. This protectionist strategy is seen by Panetta as a simplistic approach to complex economic situations.

Speaking in Rome, Panetta, who is also the Governor of the Bank of Italy, likened blanket trade measures to a 'kitchen knife' – an inappropriate tool for tackling sophisticated economic 'surgeries'.

(With inputs from agencies.)