Il testo dell'articolo è il risultato di una procedura di conversione testuale automatica che può generare degli errori nel testo. Source : FINANCIALTIMES Page of Review : 1 Page of Document : 1 Page of NewsPaper : 1 Category :ECONOMIA E POL. INTERNA Author : RASSEGNA FLASH Abstract : Padoa-Schioppa predicts Europe will bear brunt of US correction Asia's economie weight deemed not big enough By Quentin Peel and Martin Wolf in London A slowdown in Europe is thè most likely result of a big correc-tion in thè US balance of pay-ments defìat, according to Tom-maso Padoa-Schioppa, Italy's fìnance minister, and thè chair-man of thè international mone-tary and financìal committee of thè International Monetary Fund. Asia's economie weight is not yet big enough to offset a US correction, he said, but recessìon is not inevitable because thè worìd econoroy is starting troni a strong position, naving enjoyed four years of stellar growth. "I bave never seen thè correc-tioo of an external Imbalance, such as thè US imbalance. occur without a stowing down of economie activity," he said in an interview wìth thè Financial Tìmes. "For demographio and other reasons, 1 do not think Europe can grow fast enough to compensate completely for tlie slowing down in thè US." "Thè East Asian bloc is huge in tenns ot thè riumber ot people, but not huge in ternis of gross domestic product, so I aee a period in which thè sum of ali debt leads to a likely elowilown in thè growth of thè worìd econ-omy." He warned any downtum couid lead to a growth in protection-ism. "Clearly one of thè victims of this kind of scenario is 011 thè trade side," he said. For Europe, he said thè danger was of moving from a broad trade balance with thè resi of thè worìd to a deficit, compounded by tlie lack of currency Ilexibility in China and thè rest of Asia. Mr Padoa-Schioppa, who was a member of thè Éuropean Centrai Bank board before becoming finance mìnistei', said thè prob-!em was that "Asia has remained on a kind of dollar standard". Asia was in a similar position to Europe in thè l970s with "a constellation of cun-encies" in an interdependent region. "Bui it has not made thè splìt between externaS floating and internai pegging that Europe did." But on one international Unaìì-cial issue he was optimistic - on thè cSiances of reaching agreement on thè voting power for IMF roembers, govcrned by thè quota each country holds. "Tlie agreement on quotas and votes requires an aceeptancc by Europe to make room for an increase in thè overall quota of tries," he said. "I think it will be accepled. Europe must accept a reduction in its share if we want to be consistent with thè idea that percentages shouid add up to 100 and not. 110. I am hopefui tliat thè Aprii comroittee meeting wil! reach agreement." Reference date : 17/12/07 Data :17/12/07 08.25 Source : FINANCIALTIMES Page of Review : 2 Page of Document : 1 Page of NewsPaper : 4 Category :ECONOMIA E POL. INTERNA Author : RASSEGNA FLASH Abstract : Prescription of excellence for Italian problems FTIHTERVIEW Finance minister "Thè country is highiy indebted, and at thè same Tommaso time under-capitalised. Of Padoa-Schioppa tells Quentin Peel course, to re-capitalise a country in a situation where you cannot increase debt is how he plans to tacide a raiige of extremely difficult. We cannot get finance from outaide. We bave to get it from chalìenges withia thè budget by saving on thè way we spend. Tommaso Padoa-Schioppa, "It is extremely difficult to Italy's centrai banker- bring about a reduction in turned-finance minister, spending, particularly in a spent his first 18 months in highiy unionised country office wrestling to cut thè such as Italy," he says, "AH nation's budget deficit and these are services, AH that hangover of extenial debt. means a reduction in This meant "dismtoxicat- emplovment." ing thè Italian economy from A further complication is thè two stimulants tbat bad that thè worst areas for been abused from thè niid- ovennanning in thè public 1970s onwards: periodic services are centrai and devaluation and deficit southern Italy, which are spending." he Bays. "Abuse mudi poorer in income per of these two stimulants had head than thè north. weakened thè structure of "Thè idea that help to thè thè economy." south shouid take mainly That was thè easy part of thè form of overmaiming in his job, he reckons. Now he public services is very preva- taces thè more challenging lent. I tend to think thè lask of improvìng thè qual- oppoaite; that low productiv- ity of state spending, and ity is due to thia overman- tackiing overmanning in a nhig. and it makes invest- bureaucracy often strangied ment less attractive." by its own red tape, while Mr Padoa-Schioppa's an- negotiating witb powerfui swer to his dilemma ìs to trade unions - an essenÈial port of bis centre-left govem- promote excellence - in public services as in thè private ment'e supporterà. sector. "Thè way forward is "Improving thè quality of to show that tnere are good public expenditure Ìs an practices aiready in thè isaue even more relevant to country," he says, "I am stìmulating growth than just seeking to show that we do financial equilibrium, " he not demand thè impossible." told thè Financial Times ila Excellence is also thè key an interview, to private sector perform- Thè problem ranges across ance, he says- Ilaly ìs and thè spectrum of public will remain a manufacturmg spending, from cbromc con- centre, from history and cul- gestion on northern Italy'a tural tradition- But it wiìl roads, to big class sizes in oniy be able to compete by secondary echoois, and a shortage of good scientists and engineers coming out of producing higher quality than cheaper manufacturing centres in Asia. university. He singles out lack of adequate road and raìl spending On thè one hand, focus on manufacturing makes Italy more vulnerable to globalis- as a good example. "Thè average speed of traffic from ation, he says. On thè other, "thè amount of people who Turin to Verona may be 25-30 IrilometreB per hour," want a Ferrari ìs increaBing extreniely fast. Tlie samc is he says. "That is an true for excellent wine and immense cost for thè economy, You need simply better trains, and less transport-atìon on thè roads, and more sophisticated clolhing. If Italiana are capable ot mov-ing fast into thè top layer of quality, then thè faci that roads. they manufacture traditional goods is not an impedunent. It is also an opportunity". ONLINE VIDEO Por a video of Tommaso Padoa-Schioppa discussing market turmoil wrth Martin Wolf, go to www.fLcom/MMclalvIdw Reference date : 17/12/07 Data :17/12/07 08.25