Interview by: Jamie McGeever
"JM: The Euro zone debt crisis reached a crescendo in May but already a
second wave of market and economic uncertainty is upon us. Here to
discuss the Euro zone policy and economic outlook is Tommaso
Padoa-Schioppa, one of the founding fathers of the Euro and the European
Central Bank. Mr. Padoa-Schioppa, thanks very much for joining us. Good
day. There’s seems to be a sense within markets certainly that there’s a
lack of policy coordination and cooperation on a global level. Do you
agree with this?
TPS: To some extent, it’s true that now that the most acute phase of
the crisis is over, countries tend to revert to their own policy
agendas. In the meantime, the situation from country to country and from
areas to areas is completely different and I think we are in a phase in
which growth will be much less homogenously distributed across the
world than it was before the crisis and I think rightly so.
JM: But how much of a risk does this pose to financial market stability and also to the recovery prospects?
TPS: Global recovery is underway but in an uneven way and I think
this is understandable and justified. Emerging markets are growing
faster, mature economies are growing more slowly and I think this is
inevitable. Markets have to understand that but policies have to
indicate clearly that they are able to manage global imbalances better
than they did before the crisis.
Video interview: http://insider.thomsonreuters.com/link.html?ctype=group_channel&chid=3&cid=140981&shareToken=Mzo4NjE2ZmMyZC1mYThmLTQwMDAtYTEwYi00NmJmNmJiOTRiOGU%3D%0A