Interest-rate trend clear ECB's de Guindos tells Italy

(ANSA) - ROME, OCT 29 - European Central Bank Vice President Luis de Guindos on Tuesday responded to criticism from Italian government figures that it is being excessively cautious with its interest-rate policy, saying rates were clearly on a downward trend.
    "I would say to Italian and European citizens that it is important to to be cautious and prudent," de Guindos told ANSA in an interview.
    "We have reduced interest rates and the trajectory of our monetary policy is very clear.
    "But the level of uncertainty is enormous and we cannot make mistakes".
    De Guindos also called on Italy to drop its refusal to ratify the reform of the European Stability Mechanism (ESM), saying this would be consistent with a possible takeover of Germany's Commerzbank by Italian banking giant UniCredit.
    Italy is the only EU member not to have ratified the reform of the eurozone's bailout fund, despite having come under intense pressure to do so.
    The reform is controversial here due to fears about its possible impact on fiscal sovereignty and the Italian government has also said the fund should be used to foster growth.
    "I have spoken about the importance of a European approach prevailing over a national approach, but this approach must be consistent from all angles and in all kinds of situations," De Guindos said.
    "In my opinion, a pro-European approach to the integration of the economy, the banking system and the capital markets should prevail in relation to all the aspects involved, including the ESM reform". (ANSA).