“the disintegration of the euro area will not, I do not think there is such a possibility. “Romano Prodi said.
bring the euro zone issue, like a father to bring their children, Prodi has to talk about. Prodi and the euro zone’s name will forever be tied together. He is a former chairman of the European Union, Italy’s former prime minister, he is also founder of the euro area. Although retired, but now the euro area experienced an unprecedented debt crisis, national media began to crazy speculation, “the disintegration of the euro area” concept, at the moment Prodi no longer sit still.
the disintegration of the euro area will not
in CCTV’s “Dialogue” column to record the scene, our reporter saw 72-year-old Prodi. At this point, he has been away from politics, in Beijing, China Europe International Business School teaching and educating.
Prodi pointed out that since there is already a common currency, so no one wants to see the disintegration of the euro area, so we face the choice of only one, is to continue to move forward step by step, more unified.
when referring to Greece’s debt problems, the concerns of everyone with eyes looking Prodi. As we all know, Greek 2011 the first eight of the budget gap of 22%, increasing to 181 million euros, if you can not get relief, only the Greek capital for the operation of the government to 10 .
918 days, Austrian Vice-Chancellor and Foreign Minister Shiping De Lege said that the current debt crisis of Europe is very serious, do not rule out the possibility of bankruptcy Greece. According Bank of China International Institute of Finance Zongliang recent analysis, once the Greek debt default would trigger a domino effect , triggering global financial market turmoil, so that the crisis spread further to the euro area core countries.
then, Greece will be made by the experts of prophecy, as the euro zone next fuses? Prodi believes that the Greek economy can be restored, just needs time to adjust itself. Greece need to find ways to stimulate the economy, repair the financial problems of its own, to start the next round of growth.
“euro-zone countries should give Greece time, because if it goes bankrupt, then it’s never not had a debt. “Prodi said.
outside in addition to Greece, people are concerned about another country is Germany. Opponents of the euro area while shouting the “Greece is Tuoyou Ping”, while trying to find clues, trying to prove Germany and other surplus countries have been overwhelmed, feel to Italy. Faced with increasingly strong voices of doubt, Prodi pointed out that Germany can not be out of the euro: “Even if Germany is big, it must also deal with these neighbors and daily to get along, I feel it also, by no choice, This is a reality. “
Prodi that the Germans are most concerned about is that absolutely can not see the disintegration of the euro area, both from a political point of view or commercial point of view, it is not in its interest. Germany’s business community also opposed, because in fact the German market in the world has been able to occupy a favorable position, and the role of the euro can not be divided.
“euro-zone crisis will not continue to expand down. “Prodi firmly concluded,” For us, now, need a positive attitude to win the future. Cause for optimism is that we have a very strong economic base, this foundation will save the lives of everyone. “
Meanwhile, Prodi also focus on how to solve the debt crisis in Europe expressed their views.
must have a unified fiscal policy
World Economics and Politics, Chinese Academy of Social Sciences, Institute of International Strategic Research Office, Shen pointed out that the debt crisis in Europe not like the United States by printing money, currency devaluation to solve, because the power to print money in Europe is the European Central Bank, Greece and other issues of national right to print money and determine the exchange rate, so the country can not be difficult to increase exports through currency devaluation debt. Shen believes that Europe needs a unified financial, in order to really solve the debt problem in Europe.
“fiscal unity” has also been proposed investment predators George Soros. Soros believes that only the creation of a unified euro-zone finance, in order to solve the debt crisis in Europe, in order to avoid financial collapse and the “Great Depression.”
this, Prodi said he was also recognized. “I do not see what other alternative approach,” he pointed out that “a unified fiscal policy is not easy, but it also requires us out of the crisis step by step to go forward in this direction.”
“We need the euro area combined bonds ”
European Commission Xiba Luo Junior 914 at the European Parliament plenary session, said the only way to overcome the debt crisis is to promote European integration, and clearly announced that the EU Commission will issue the euro area as soon as possible joint bond program.
When Barroso eager to find a rescue that Europe’s “panacea”, the EU is quarreling, and split into two camps. Which includes Italy, Greece, Ireland-based supporters of high-debt countries, and in core countries such as Germany and France-based opponents.
German Chancellor Angela Merkel bluntly rejected the euro joint bond issue to address the possibility of the euro zone sovereign debt crisis, saying “the debt group” can not solve this problem.
response for Germany and other countries, Prodi can understand that, because “this means that Germany should pay for other countries. For the Germans, without adequate debt guarantees, then the future with great uncertainty. ”
but firmly pointed out that Romano Prodi, now has only two solutions: or else the joint launch of the euro area bonds, or else put the sovereignty of States entirely to the public, and that is to completely alienate members own sovereignty.
“We need to find a better way to tell the whole euro zone member, you are not alone … we can build solidarity across the EU, all EU community can benefit from this inside, which further help us to strengthen the unity of the euro area. “Prodi said,” Now we need political will, there is the will of political leaders, it is very important. There is political will at the technical level the level we all need such a tool. “
” What we need is a European Germany, rather than a German Europe “
Many experts believe that to solve debt problems in Europe The most direct way is to let the boss at home to lend to other brothers, to help solve the problem debtor countries.
Germany, however, seems not so reluctant. Merkel last week, acknowledged that “the previous government to accept Greece joined the euro area, indicating that it was the lack of a more reasonable judgments.” She also sent a clear message that if Greece wishes to remain in the euro area, it must further fiscal consolidation, reducing the budget deficit. Warned all euro area external debtor, Germany will not be for them “pay.”
filed in Germany, Romano Prodi, a bit helpless, he pointed out that Germany is not the only one to pay the price in the crisis countries, while other major economies. Countries need to further strengthen the unity within the euro area, which can further enhance the stability of the entire region, not only conducive to Germany, but also conducive to other EU member states.
“German Chancellor asked me, we really need such a large degree of unity it? But I told her, look at the history of it, in retrospect the Germans to give up their money, have joined the euro, you will see how many German people derive benefits. What we need is a European Germany, rather than a German Europe. “Prodi said in earnest.
IMF limited
Greek government official recently said that if the 10 EU and the IMF can not get the sixth pen 8 billion euros bailout funds, there will be no cash to pay salaries and pensions.
IMF spokesman, said cover in the Rice 98, IMF strength, to meet the needs of Member States. IMF president Lagarde in the debt problems of Greece and other countries also showed great relief determination. Before she was elected president of the IMF, the French finance minister has been the identity of Greek support for the rescue, maintain the integrity of the euro area, and resolutely opposed to Germany before the proposed debt restructuring plan.
However, the “man-eating soft in the mouth, Helenians short hand,” took the IMF money, countries such as Greece, the other party must fulfill a set of requirements. 919 days, IMF Senior Representative Bao Bota said Greece, Greece the EU and the IMF provided emergency assistance is necessary to implement reforms, while improving the tax system.
Today, the IMF described as “thankless”, Romano Prodi, when your correspondent asked how to treat the IMF rescue, the torrent of Romano Prodi has suddenly become very cold, said they did not buy the IMF the account.
with a slightly sarcastic tone Prodi replied, IMF is responsible for so many things, its ability is limited. Of course, IMF can do it want to do, but the Europeans issues to be resolved by the Europeans themselves, Europeans must rely on their own to rescue the Europeans, and this is no doubt.
, the dialogue between Europe and not enough depth
recently, on “China can save Europe” issue, in the world triggered a heated debate. Summer Davos Forum in the opening ceremony, Chinese Premier Wen Jiabao said: “China is willing to lend a helping hand, to expand investment in Europe. “
Premier Wen’s words were interpreted as a signal to national media, suggesting that China might holdings of European bonds. The U.S. National Broadcasting Company quoted analysts as saying that China has actually become global economy the last line of defense, the Chinese may be Europe’s only “savior & rdquo ;.
but the “Forbes” magazine is published 915 days a commentary entitled “the power of one country, China alone can not save Europe.” Economists, for example, said Weinberg, Italy’s debt up to 2.3 trillion U.S. dollars, China’s foreign exchange reserves total around $ 3 trillion, most of which are dollar-denominated assets. China can not save the power of a country with Italy, not to mention Europe.
regardless of whether China will become the “savior”, Romano Prodi that the cooperation of European countries and China will play a positive role. “We can through political dialogue to bring about such cooperation, we also remember that we carried out a lot of political cooperation, but I think our dialogue are not enough, not deep enough. “
Italy to China to sell bonds?
Recently, the Italian S & P long-term and short-term sovereign credit rating from “A +/A-1″ raised “A/A-1″, outlook is negative. This makes the already clouded in Italy is caught in a more pessimistic position.
Italian public debt is currently up to 1.9 trillion euros, more than Greece, Spain, Portugal and Ireland, the sum of the four countries also large, even the existing size of the European Financial Stability Fund compared to all shame. This makes the international community was spread kind of public opinion, that the Italian “big to save”, if the Italian crisis continues to worsen, and even a direct result of the disintegration of the euro area.
of the State Council Development Research Center of the World Ding Yifan, deputy director of the Institute also pointed out that capital markets are most worried about now is that in Italy today to have a great debt due, the state can not afford to deal with these debts due .
face fears, Prodi argued: “I am well aware of the situation in Italy, when we enter the euro zone, we have this debt, and we also manage a lot of debt, there has never been any problems. “
” Italians had never thought he would be subjected to the crisis. “Prodi said,” but now the situation has changed, there has been this debt crisis, but one by one to beat the storm in different countries, so it was suddenly paying attention to the debt problem in Italy, and Italy is beginning to discuss to have the ability to repay the debt … In fact, Italy is still Italy, or that, and when entering the euro zone as Italy, we should not doubt for Italy. Italy is facing not just a national problem, but the entire region’s problems. “
Prodi that, despite Italy’s economic growth is slowing, but not because of debt problems, but a lot of variables such as labor force caused.
and Italian government bonds are worth buying for the issue, Prodi said that this is the confidence and political will of States decision. But he stressed that the euro is much better than the dollar gains as the dollar has been devalued, the euro has been rising.
Prodi pointed out that China’s foreign exchange reserves should be more diversified. “Unless you believe that Europe will sooner or later comes to an end, the future will crash, then you do not buy the debt of Europe. Otherwise, I think China should still look better balance of U.S. Treasuries and European bonds will be … … the euro has appreciated against the U.S. dollar is 1:1 at once, it is 1:1.40, so is cost-effective, is it is worth doing a business. “
” reading programs, you might say Italy, Romano Prodi hopes to sell bonds in China. “Prodi joked.
Tags: Former Italian Prime Minister: We need to co-euro bond, settlement, the euro, the need, union
