Official launch of the 2009 European Economic Advisory Group (EEAG) report: extracts from the speeches by Joaquín Almunia, Gilles Saint-Paul and Hans-Werner Sinn

Type: Report   Reference: I-060688   Duration: 10:32:08  Lieu:
End production: 25/02/2009   First transmission: 25/02/2009
A press conference was held on 25 February 2009 for the official launch of the 2009 European Economic Advisory Group (EEAG) report "Europe in Recession, The Years Ahead", an economic outlook on European economy and policy, the financial crisis and private equity and the situation in France. Joaquín Almunia, Member of the EC in charge of Economic and Monetary Affairs, Gilles Saint-Paul, Chairman of the European Economic Advisory Group (EEAG), and Hans-Werner Sinn, President of the Institute for Economic Research (IFO) and Director of the Center for Economic Studies, attended the press conference to underline the reasons and solutions of the current economic recession.

Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
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TIME DESCRIPTION DURATION
10:28:31 Title 00:00:04
10:28:36 Arrival of Joaquín Almunia, Member of the EC in charge of Economic and Monetary Affairs 00:00:10
10:28:46 Joaquín Almunia (in ENGLISH) saying that financial authorities, the economic authorities, the Central Banks, after the Lehman Brothers case, had established a very strong pact among all of them; the political leaders of all of our countries had ratified this pact; they will not accept in the future an institution like Lehman Brothers to go bankrupted; they have been experiencing in October how difficult it is to avoid a complete collapse in the system with the circumstances of September 2008. 00:00:52
10:29:38 Cutaway 00:00:04
10:29:42 Joaquín Almunia (in ENGLISH) saying that one argument put forward in the report in May is even clearer today: the need for the EU to have an external policy, an external strategy, an external coordinated approach to the global challenges; once the strategy is coordinated, we cannot afford to have 27 voices, we should have one voice to develop and to defend our own strategy, our own interest. 00:00:35
10:30:17 Cutaway 00:00:05
10:30:22 Gilles Saint-Paul, Chairman of the European Economic Advisory Group (EEAG), (in ENGLISH) saying that reflating US internal demand is probably not the way to go; a reasonable way of exiting the crisis would be to find sources of demand elsewhere, in places perhaps like China; reflating US internal demand will reproduce the problems that US economy had during the preceding boom. 00:00:23
10:30:45 Cutaway 00:00:05
10:30:50 Gilles Saint-Paul (in ENGLISH) saying that we have to keep in mind that the response to the crisis has been the massive injection of liquidity into the system; in his view, there is a risk of very quickly resuming inflationary pressures, the day we exit the crisis; we have to keep an eye on the liquidity that has been created to offset the liquidity shortage during the financial crisis; but the day things start to work again, there is a risk of inflationary pressure. 00:00:42
10:31:32 Cutaway 00:00:04
10:31:36 Hans-Werner Sinn, President of the Institute for Economic Research (IFO) and Director of the Center for Economic Studies, (in ENGLISH) saying that the crisis came in two steps; it began in 2007, in the summer, when the interbank market collapsed; but that was rescued, or remedied by lots of liquidity which was pumped into the market; then it was only a liquidity crisis; but it turned into a solvency crisis with Lehman Brothers when they failed in September because the right-offs which were necessary were so large that many banks went bankrupted. 00:00:32
10:32:08 Cutaway 00:00:04
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