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Sunday, 28 October 2012

The former Russian Finance Minister Alexei Kudrin believes that keep Greece in the eurozone is no longer possible, and the following monetary union could leave Spain and Italy.

Saving Greece in the eurozone, according to Kudrin, "it is impossible," writes the Wall Street Journal . At the same time, he said, the likelihood that these will come from the monetary union, Italy and Spain, "very high."

"Should be taken every measure to prevent this, but I do not see that the process is under control," - said Kudrin. However, he expressed concern that the economic problems in Europe could be transformed into policy.
"Democracies do not always survive when their citizens are asking for the sacrifices, the need of which is facing Europe" - says the former official. According to him, the citizens of Western countries are not ready to fall in living standards, but if the government will not cut spending, the situation could deteriorate even further, reports RIA "Novosti".

"Russia has already passed it in 1990, but thanks to President Yeltsin, we were able to go through this period of peace. I'm not sure that Western countries will undergo them as - the process can be very painful, " - said Kudrin. ECB decision on measures of economic support will have only a temporary effect, as the regulator of capital reserves are not unlimited. At the same time Kudrin expressed confidence that the euro as the single currency still remain.

In the short term, it assumes even greater decline in economic growth in Europe and believes that governments need to reduce debts - it will go to growth. In the U.S., the problems with the budget deficit and the national debt ceiling is a significant long-term risks.

He also reflects on economic situation in US: "No matter which party wins the elections - both are in a very difficult position, " - says Kudrin, though suggests that the future of the dollar is not threatened. "Confidence in the dollar is not shaken. If the U.S. administration to cope with the task of fiscal consolidation in the next few years, the dollar will be stable. But if the dollar weakens, is no other currency that would replace it, " - said Kudrin.

On Monday the Greek government statistics agency announced a review of data on budget deficits and debt in 2011 to the downside. In early October, the Greek Prime Minister Antonis Samaras said that the money from the country  will end  by the end of November, when a triple international creditors - the European Union, the European Central Bank and the International Monetary Fund - Greece has made ​​the next tranche of loans.

Greece's economy is  the fifth year in a recession , the budget for 2013 assumes the sixth consecutive year of economic recession with reduced GDP by at least 3.8%.

Recalling that in late September, the IMF said the EU leadership that  comes from the Greek aid program , which finances its budget deficit and debt by foreign aid in 2010, but will be held the second to be restructuring of Greek debt.

Previously, private business was forced to agree to  write off 100 billion euros  of government bonds of Greece. As a result, investors have lost 70% of its capital invested in Greek bonds to be restructured.

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