Education and training program in the hospital APR.pptx
Interview Banco di Brescia
1. COMENIUS PROJECT
2013-2015
CRISIS ? WHAT CRISIS?
An Interview with
Dott. Orsatti Roberto e
Dott.ssa Liliana Ragazzoli,
from “Banco di Brescia”
2. 1- Is there a financial crisis in Europe?
The financial crisis was officially recognised at the end of 2010 but it
started in the United States of America in 2007-2008 with the
“Lehman Brothers” bankruptcy.
3. 1- Is there a financial crisis in Europe?
The European Central Bank BCE allocated funds to European
countries to avoid default. These countries were Ireland, Portugal,
Greece and Italy.
4. 1- Is there a financial crisis in Europe?
At the beginning the crisis was underestimated. The previous long
phase of rapid growth brought a lack of balance due to the
globalization of financial flows. Many families and enterprises
ran into debt and private savings disappeared because of the
worldwide financial crisis.
The crisis caused the global drying up of liquidity and contraction of
credit flows to enterprises and families.
5. 1- Is there a financial crisis in Europe?
The Italian national debt is high and so are the interest payments.
The solution is to cut public charges or raise taxes but this means
less consumption so an economic slump occurs.
There is also a need in Italy to fight tax evasion.
6. 1- Is there a financial crisis in Europe?
In some other countries the impact of the crisis is less evident.
The problem is that Europe is not able to have clear thinking or agreement
which would affect the redefinition of the financial/economic worldwide
system.
7. 2- How does it affect your business?
Money circulation is the bank’s business, so a financial crisis means
a banking system crisis. Banks are seen as scapegoats mainly in
handling the funds of European Central Bank BCE. Banks had to manage
the emergency caused by the crisis. They had to reduce the allocation of
money to families and enterprises.
8. 2- How does it affect your business?
The cost of money is high because there is lack of monetary
liquidity. Banks give money to ones who deserve it so enterprises are
evaluated. It is sometimes difficult to manage bank work.
There are different banks: some have financial solidity and can continue to
support families and enterprises; others do not have solidity and cannot
give money to anyone.
9. 3- What do you do to overcome the crisis?
There is some support for families and firms, for example, a
“moratorium” on payments for 12 months to let people find the
money to pay debts.
10. 3- What do you do to overcome the crisis?
Unfortunately savings are eroded and if people do not get salaries it
creates a big social problem. There are also some funds for the young
who need to buy a house. We also need an economic recovery, more work
and increased salaries.
11. 4- How could this crisis be avoided and what would your advice be to the young
people of Europe?
Economists did not understand this crisis so neither did we.
The American government should have realized that indebtedness was
extreme. The monetary policy was too permissive and regulations
were too lax.
Better politics may have avoided this crisis.
12. 4- How could this crisis be avoided and what would your advice be to the young people of
Europe?
In 2003-2004 USA market analysts realized that there were a
lot of rising social financial imbalances.
In 2005 analysts agreed that all these imbalances could cause severe
problems.
In 2006 the analysts Raghuram Rajan, Ken Rogoff, Nouriel
Roubini and Robert Shiller warned that lots of risks were
growing in the financial markets. The Federal Reserve could have
increased interest rates to slacken credits.
13. 4- How could this crisis be avoided and what would your advice be to the young people of
Europe?
Young Europeans need lots of optimism because only young people
can help to get out of this crisis.
They have to be open to other countries, to open their horizons,
not just to feel sorry for the negative situation, not to let themselves go but
they have got to try and snap themselves out of the crisis.
14. 5- Are there many requests for funds at this time?
No there aren’t, because people are afraid of long-term debt.
Firms are fearful of investment because they do not know what
the future holds.