ContextWritten statement by Bank of Italy Governor Fabio Panetta to the World Bank–IMF Development Committee in October 2026; the committee steers development finance at a time of shocks hitting poorer economies.
Why it mattersItaly's central bank chief sets out Europe's expectations for World Bank reform: more private capital, local-currency lending and focus on Africa.
- Energy, fertiliser and transport disruptions are fuelling inflation.
- Developing economies have thin buffers against shocks.
- Private capital for development remains too limited.
- Back the World Bank's reform and investment priorities.
- Expand equity, local-currency finance and private capital mobilisation.
- Secure a strong IDA22 replenishment, especially for Africa.
Read the speech summary
1. A harder world for poorer countries
In a written statement to the World Bank and IMF Development Committee, Bank of Italy Governor Fabio Panetta, speaking for Italy's constituency, said geopolitical conflict and fragmentation disrupted energy, fertiliser and shipping in 2026, raising prices and denting confidence. Emerging and developing economies, with thin budgets and narrow energy supplies, suffer most, and development has stalled in several of them.
2. Priorities for the World Bank
The constituency backs the Bank's reforms, provided they deliver measurable results. It supports job-related training and labour-mobility skills partnerships, citing Italy's programmes with Tunisia and Ethiopia; health plans, African medicine manufacturing and rapid funding for epidemics such as Ebola; digital and energy investment so that AI, which the Bank's 2026 report says could add 0.8 points a year to developing countries' potential growth, spreads widely; and the extended climate plan, including a cautious return to financing nuclear power with the IAEA.
3. Money and governance
It welcomes the push to mobilise private capital through equity, local-currency loans and common standards that would make development projects an investable asset class, while keeping flexibility and countercyclical lending for the poorest and most fragile. It also backs longer share-subscription periods, a fair 2030 shareholding review, a strong IDA22 replenishment focused on Africa, and close monitoring of new procurement rules against subsidised bids. Italy highlights its own Mattei Plan, mining and coffee initiatives and support for Ukraine's reconstruction.