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MRUEBGRAIKINATERVIEW
thing. If a country is heavily indebted and countries like Macedonia or even Poland
there is no room for further stimulation cannot do anything about China or United
then this is counter-productive. Many States or Germany. This is given, so let us
populists are fond of blaming the focus on our countries. The more difficult
markets. But, if you look at the root the external environment would be, the
causes and behind the excessively risky better we have to be, to respond to more
behavior of some financial markets, they difficult circumstances. There is no point
are bad interventions. I was the member in worrying about the problems; the
of the so-called de Larosiere Group in whole energy shouldbe focused on what
the European Commission, and in the we can do.
report we have pointed out various
wrong interventions. To start with, too What would be your advice for a
big to fail. This was an intervention that country like the Republic of Macedonia?
consisted of rescuing huge banks and
has demoralized the markets, because L. Balcerowicz: There are general
large financial institutions were regarded lessons, nothing specific. If general
as non-risky, they were offered cheaper lessons are applied then the country will
finance and they grew even faster. Or, be successful. First of all, private economy.
Basel regulations that favored lending by State ownership should be eliminated.
the banks to the government, there are State-owned enterprises are the channels
tens of regulations and one has to remove for political interference. Second,
them and I don’t think it has been done, small, competent and apolitical public
at least not to a sufficient extent. administration. If the administration
and even worse, the justice system, are
In your opinion, how is this going captured by any party, it is not only in
to end up? Uncertainty is very large and violation of democracy, but also it is
the world’s economic outlook isvery bad for the economy. It is distorting.
bleak. How to remain optimistic in these Third, what you already have, monetary
difficult times? discipline, low inflation, which requires
fiscal discipline. Of course, opening to the
L. Balcerowicz: This not a matter of world, in the case of a small country is a
mood but of action. First of all, small must. Reduction in political uncertainties
so that private businessmen know that
20 September 2015
