TPS - Uneven global growth understandble

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.
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Video interview: http://insider.thomsonreuters.com/link.html?ctype=group_channel&chid=3&cid=140981&shareToken=Mzo4NjE2ZmMyZC1mYThmLTQwMDAtYTEwYi00NmJmNmJiOTRiOGU%3D%0A


Source: http://www.tommasopadoaschioppa.eu/europa/uneven-global-growth-understandble-padoa-schioppa