Eurozone: Russia Too Worried. Russian Prime Minister Vladimir Putin said today that the Russia was ‘very concerned’ at the crisis in the eurozone, adding that measures must quickly be taken to avoid stagnation. “We are all very concerned about the crisis in the euro area. If measures are not taken urgently the next step is stagnation,” he said, before the international experts of the Valdai Club.
“We count on the authorities and the countries of the European Union so that they are involved in the process and prevent the development of these events” he added. However, he acknowledged that he was always more simple to observe from the outside, adding what appears to be well in theory does not always work in practice.
The EFSF lacks necessary resources
Vladimir Putin expressed doubts about the capabilities of the European Fund of Financial Stability (EFSF) and The International Monetary Fund (IMF) to raise enough financial resources to overcome the debt crisis in the euro area. Russian Prime Minister also stressed that it was essential to avoid that the Italy switches in turn. “The Italy should in no way be allowed to fail, it would be a disaster“, he said in a meeting with Russian experts near Moscow.
The Russia, half of which trade relations are with the European Union, is very concerned, he added, the situation of the countries of the euro area. “Our best experts think that without direct intervention of the European Central Bank, this problem cannot be resolved“, he continued. “The EFSF, alone or in cooperation with the IMF, lacks the necessary resources” as he sees to € 1.500 billion approximately.
The Russia has already previously mentioned assistance to the euro area through the international monetary Fund for an amount that can go up to US $ 10 billion, but Moscow has never set an agenda.