![]() However, there is also another side to the mini-BOT which is important to highlight. Thus, Borghi sees mini-BOT as a tool of fiscal expansion without relying on the euro. Due to their character (paper form, small denominations) it is hoped that they will be spent locally, thereby stimulate growth in the Italian economy. ![]() The crucial idea of the mini-BOT is that it would be used as means of payment. ![]() It is planned, however, to accept mini-BOT as legitimate mode of payment to settle energy bills or buy train tickets or other goods and services supplied by publicly owned companies. That being said, parties other than the government would not be obliged to accept mini-BOT. Proponents also hope that mini-BOT would be used for payments between private agents. The government would guarantee accepting mini-BOT for future tax payments, thereby implicitly safeguarding, according to its proponents, its value. Mini-BOT, unlike traditional BOT, would pay no interest and would have no maturity. In a first step, the government would use mini-BOTs to pay public arrears. Borghi even presents facsimiles of the new mini-BOT mimicking the euro banknote in his book. Mini-BOT are planned to be a type of IOU (“I owe you”) that will be issued in paper form and small denominations (€1 to €500). We present here the mini-BOT proposal drawing principally from the book of Borghi Aquilini. instruments such as government bonds of small cut, even by evaluating the definition of public debt in the appropriate instances.” Description of the proposal (as far as we know) ![]() Finally, it was further downgraded to “government bonds of small cut” in the latest “contract” agreed to as a basis of the new Italian government.Īs we could not find an official English translation of the program agreed to between the League ( La Lega) and the Five Star Movement ( Movimento 5 Stelle or M5S), we provide below our translation of its part on mini-BOT, which proposes: Among the issues on which they are seeking more clarity, there is one that has taken different names over time: It started with the pompous and threatening denomination of parallel currency before it was more modestly renamed as the mini-BOT by Claudio Borghi Aquilini of the League. Italians, fellow Europeans, savers and financial markets as well as the entire global community are eagerly looking at Italian political developments to try to understand the direction the country with the third largest economy in the euro area will take. ![]()
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