Âåäóù. Oh, you sound so optimistic! I even felt better! Next issue, which we were to discuss is the situation in Cyprus. Can you tell us some uplifting predictions on this.
NAIBULINA: Not, really. Firstly, I felt sanguine about it. I agree that to regulate financial transactions and to rule the whole system is very difficult and is like playing cat and mouse, but to my mind 10% is an unprecedented decision
Âåäóù. Errr, if I’m not wrong, you meant deposit taxes which the Trojka has introduced. Am I right?
NAIBULINA: Yes. I’m deeply sure EU need to tackle this financial problem not this way.To tell you the truth I suggest that there is something else that is influencing Cyprus crippled financial system. I’ve been working in this sphere for many years and I believe that Cyprus which is only 0,3% of the total gross domestic product of EU, which don’t breath down its neck, which don’t influence any processes is really easier to save than any other European country! May be there is something else, not exactly the problem that is discussing…
ÂÅÄÓÙ: Naturaly, our talk on crisis can’t but lead to the main topic of today’s economy – crisis in Cyprus. And we invited The Minister of Finance of Cyprus – Mr Sarris.
Tell us, Mr Sarris, what has happened in Cypris? We know that you stand the racket.
SARRIS: First of all, the Cypriot economy is arguably too small to be relevant to the health of the entire eurozone. It was this argument of systemic relevance – and the threat of contagion – that European leaders used to convince their national parliaments that Greece, Portugal, and Ireland needed to be kept solvent and within the common currency. A special tool, the European Stability Mechanism, was even created to signal to the international financial markets that the eurozone would do everything to rescue its members. But the small island in the Mediterranean has little negotiating power. The Troika and its supporters have justified the levy by arguing that the state could not support the debt burden of a bank bailout. But this simply means the debt burden has been transferred from the banks, where it properly belongs, to households.
Thank you Mr. Sarris. We’ve been told that the Finance Minister of Itally, Mario Monty, has just arrived. Oh here he is. Let’s give a word to Mr. Monty.
How is Italy reacting to the existing EU crisis? Could you give as a short coverage of the situation in Italy?
( about political crisis which caused the economical crisis in Italy……situation)
- What are the issues of the major economic concern in Italy?
- There`s a wide-spread opinion that in some respect, it is the Italy’s split vote that threatens to revive financial crisis in Europe… what would your response to it?
( it is true that our split vote has created us a lot of difficulties………
However there I would like to underline that Italy hasn`t been given any extra time to reach their budgetary objectives.
Not only has Italy not requested any extra time to perform its adjustment, but it did not request any financial assistance from the EU or any other international organisation. On the contrary, Italy has contributed to the financial assistance of other EU countries in need."
- So does it mean that you express disappointment at the way Italy is being treated by fellow EU leader?!
( in some respect, and I feel obliged to express every the issues of our concern freely and unhindered. I am sure that will lead to better cooperation and revive financial crisis in Europe. And I can tell that other countries such as France and the Netherlands were being granted more breathing space on their spending targets than Italy had been given over the past 16 months, meanwhile I followed EU orders in my policymaking.
As a result there is A TENDENCY that Public support for the reforms, for the European Union, is dramatically declining not only in Italy but in many other countries across the union.
- Does it mean you feel discontent about your cooperation with the EU? Are there any solutions to the existing situation?
( By no means. But these are the issues I `m issue Italy will put on the agenda and will consider as the issues of primary concern that we hope to combat in the nearest future. We plead EU for better cooperation in the period of crises. I am absolutely sure that reviving long-term unemployment and financial crisis would be the best message to counter the mounting wave of populism and disaffection with the European Union, showing that Europe is listening to people's concerns.
Âåäóù. Well all of us have just heard that Troika is the one to blaim for the crisis?
And after as short cofe-brake we will gave chance to the representatives of the Troika to justify themselves.