Europe made mistakes when pulling out of the economic crisis

29 january 2018 | TV Channel "TVC"

"The leading economies of the world got a bit carried away boasting about how successful they'd been pulling out of the 2008 crisis by allegedly following some kind of a plan. They had a completely disastrous crisis that it took them nine years to get out of, what plan are they talking about?" - Chief advisor to the Head of the Analytical Center Leonid Grigoriev commented on the start of the Davos forum in an interview for TVC.

Leonid Grigoryev
Leonid Grigoryev
Chief Adviser to Head of the Analytical Center

According to the expert the West got lucky when the price of oil fell. In the meantime they are still facing a number of unresolved problems such as the paralysis in the credit market (the interest rates are low but people do not use them), savings are low, the US and the EU are in debt. If inflation and dramatically interest rates suddenly rise at the next stage, the West may run into some serious problems that have so far gone unmentioned while the experts have been discussing such financial problems as the overheating of the market. "The EU made some serious mistakes as it was pulling out of the economic crisis," the expert summed up.

Speaking about relations with the US, Leonid Grigoriev noted that the Americans had been staying away from our delegation at the forum for two reasons. "The State Department has apparently imposed strict measures in talking to Russians and at the moment they're acting like Soviet delegations used to act abroad in the 1970s and secondly, in their shoes few people would have risked talking to us as that would immediately get picked up by the media at home so they don't want to take the risk, especially before their big boss shows up," the expert believes.

In Mr. Grigoriev's opinion, if the Europeans were to enforce all the American sanctions they would be running the risk of turning into countries that are acting on orders from another country's ministry and the Americans then would not stop at sanctions.

At the Davos forum the Russian delegation has been talking about improvements of the investment climate in the country and has held a number of constructive negotiations.

Source: TVC