we've got. the biggest issues good human voice ceased to face with the news makers . back here with r.t. coming to live from moscow tripoli says it's ready for any political reform provide of the current gadhafi remains in power and to prevent libya from slipping further into chaos experts say destabilizing the arab world as part of washington's efforts to dominate the region could obvious envoys in europe for talks on a possible solution to the conflict which has dragged on for over a month. there is anger in the u.k. as a country spends millions of pounds on the war in libya while the public sector at

home is neglected and slashed a recent poll suggests nearly half of the population opposes the involvement in libya while british politicians are overwhelmingly in favor of it. at a russian spaceship named after the first man in the orbit is carrying a three to the international space station to mark the fiftieth anniversary of you regards first wife two russians and not american will spend nearly six months on the ice sas worthier due to arrive in a few days time. this madness here in our next algren off talks to a prominent european banker about the debt challenges facing the economy's spotlight is next. hello again oh welcome to spotlight the interview show on our team i'm going all

things today my guest in the studio is franco naming the financial crisis a blow that levels of the g. seven countries to the post world's many experts believe that this time the way out for many of them is going to be harder than ever the major reasons are below it's not the growth and aging population is there a tool to prove the economy to answer this question our guest is franco but said that it looks and european club of long term investors. weakened by impressive cash losses from european economies are now overridden by debts which already seek to educate their own for several means that help cut the debts but many of them have side effects incompatible with social stability in the city says the best ways to boost the g.d.p. by attracting long term investments into infrastructure scientific research now

terms of energy sources and etc the best investors are countries with a small state desk and high konami growth like china and russia. helos in your bus and you walk into the show thank you very much for being with us thank you well first of all i want to ask you about the public debt crisis which i think remains a major problem for the e.u. countries what's your attitude to the new measures that the european countries europe and leaders have agreed upon on their recent summit in march. but i think that. the european union is on the right the way. that the problem is that. in my view it's impossible to reduce. public debt to and to

we're reaching a true long fiscal consolidation. only with the very sylvia. measures so far they do seem with the public expense. in a very severe manner badgett policy is necessary. absolutely back to it we need also to accelerate growth tool a new beginning the process of growth. without the growth is very difficult. in fiscal salinas so the big main issues ease how to finance.

the growth of growth home requires set very important investment he nair in the sector. such as a for structures a church or research in the nation energy and via remand and without the times these investment when it is very difficult to do it with the badger reserves but many european countries they are undergoing major spending plans. these days does it mean that the european model our work for a state has failed i don't think that in the early the we could in europe. to link to a very important reduction. of the rights

and the killing services of the so-called welfare state the political. the politically equilibrium. do not and do not. accept. the government we. lose in this case the the support of the of the of the population but we have to put the fact to. a welfare state costing less. and if this is possible this is possible with the two main measures and a very a very strong in the innovative use over new technologies of the information technologies and in the early zation of the services of one for sit

for instance of the so-called. pyramid seeing the as services using the internet using peons in the second these is a the reduction of the welfare services for the richard ones for the the the parent of the population that can be and sell business they came a leg the other activities and also in the patients system where the more important to finance the by private do you think that the euro inflation may be a sort of a solution to the problem. i don't i don't think it will think i know there. mainly

in the united states that there are people there in part time to send will send economists to to think of the. best way to. put the fiscal consolidation needs a very strong inflation yes that's right that's why i'm asking that bad bad or strong inflation. historical experience shows they inflation has very very severe consequences on equality on public welfare and on and on the growth so we think of a third the solution is not inflation mr bethany you wrote i quote reforms to liberalize markets boost competition and cut regulatory burdens are necessary but by themselves these reforms they have proven not to be able to

achieve the desired results and quote can the crisis be overcome without an active role of the governments you have been a member of the government of one so why would you say. here say i with a member of the government back in quite different. situation a price difference here scenario in the in the ninety's. in the ninety's said the need for italy was there. to realize a very strong fiscal consolidation and we succeeded in reducing the. deficit to two or two gen p. ratio. from nine percent to two point. two percent. we begin to reduce. also the most public data retail leading to

my worldly term lived to a one hundred twenty five percent point over g. and p. and nine hundred ninety five and in two thousand it was reduced to one hundred eight so get back to this is the naria lies there with a very severe and rigorous hand policy of reduction of public expenses that back. with. to the growth you represent the banking sector today do you think that the banking sector must be more strictly regulated by the government in order to avoid the bubbles the credit bubbles and. i think they could the banks can say to their. needs. not regulation by the government my

opinion is the need. gudrid intermission and legalization and the independent authorities the nation an independent authorities or are a regional like european and depend of the fall it is. capable to apply these information and rules without the in the influence any information of the political of the governments because we need the independent regulator. but i think of it the rules that have been established i mean does a three or a new vote for the insurance sector and say listen to. all the information our country stands. these rules and not the very

good rules because they have been conceived. thinking. only of the the richelieu of the problem of the financial stability back financial stability quietness of so. fist the fiscal consolidation and the acceleration of growth the connection video in a mood to all connection financial stability is a condition for the growth if all the fiscal consolidation but growth and fiscal consolidation a condition for the financial stability to chicken across it so if the rules are thought only think into the financial stability and penalize and it nowadays they penalize the investment the long term investment needed for their growth for completely even a search for innovation and the result that can be

a good result says franco of vaseline the hand of the time european club of want turn that spotlight will be back shortly we'll take a break and continue with an interview in less than a minute failed state where you are going to go. i.

see wealthy british. markets. find out what's really happening to the global economy with. no holds barred look at the global financial headlines. reports.

of violence from months to. come. welcome back to spotlight i'm al granard and just a reminder my guest in the studio today is franco bus and he had of the pan european club of long term investors and a former minister in the italian cabinet. is the vicinity today many. countries are governed by right wing politician right wing parties are in power

they are becoming increasingly unpopular and as far as i understand this is the case in italy for you are a former minister in a left wing government then i guess you are you are still a left wing admirer i mean well you stand for for the left rather than for the right in politics so can you tell us do the left have an alternative that they are ready to propose i mean in the policy for governing european countries let's take a little who is he in fact in italy the government now is item popular but the opposition. the center left of position the extreme left to position and the center position. even worse is that even even even one so the then your problem is that now. the last of the last poll

published. told us that only twenty three percent obliquely and had the he favorable way chanelle of the of the of the governor the italians don't want no government on him he was an original or yes this is you know is the true reason in my opinion i'll be there to detail. have already been in favor of. political integration because the generally think there to be governed by foreign pretty shame is always better than to be governed by the vacation politician this is this is a general then the tele an ad not chauvin they tend an ad very favorable to the foreign minister to foreign countries to all foreign products to foreign

experience this makes us very similar you know the italians and the russians russians like were foreigners to even feel that russians feel that foreigners they probably they knew better than us and the e.u. might remember the time when margaret thatcher was the prime minister of great britain many russians in this time said well after the end defer term in office let's ask her to come to russia and together they learn this government and visit me in detail the happen but with with john kennedy and also. when. he was just been elected and. there was. a need to be people. saying back that we cannot realize that there isn't a union between france and italy and so to a very the the same the same air head of the government technical i suppose he is perfect well why don't you try a lot of important. pretty effective had

a double standard. ok no not in any in any case. i was i was saying that the d.v.d. the people favorable to the government in the last poll was only twenty three percent but the people having the a good. judgment on the opposition was only fifteen percent and they changed even less even less so the problem may need to be but only literally is that the modern democracy rick bragg. a good government efficient government but also a position having a tentative programs and. and really really good and tentative progress just waiting for their turn yes. ma opinion is that the new road but the difference between. left

the center left or the reformist left the moderate left and and and right. back to the center right of the modern state saying right they have no more of a very important sense of the word both both for the did the welfare state the bad and both sides of a division over the one firstly both that are for all the growth and farther and farther. and farther rigorous budget policy said. so the defense had not paid heed the part and this is this is the reason ok now i have another quote from the e.u. wrote investment in strategic sectors like infrastructure is research and technological innovation environment and alternative energy sources saying why the

technologies put faster economic growth and enhance productivity and quote historically long term investment has always been a burden for the state graduate do you think that europe today italy today has enough money for long term investing into the way i think that. we have a lot of money in the world and also we would always print more and also in europe and also you could. the kenyan families. when they can earn on not all their families back. out of money. power they don't to use for consumption seeding for the rainy day saving series but yes. i would just need to shun custody posted previously in the children of cost of the post the place the thing that has. two hundred billion euro

coming from family savings collected by the post office and then and we can use this money for a long term investment because these family used to keep their savings for long before long. knowing their. savings have a state guarantee state can't. but who have two thirds of these two hundred bigger muro now in liquidity putting the treasury of the of the state. what is the reason they didn't is there to my opinion a lot of rules. penalize the

privately vestment in these infrastructure in research so we need. new rules fiscal incentives. supervisory rules accounting rules martha. now they five are the short term financial investment in the interest of growth of. prosperity we have to change cizik a nation or for the fiscal incentive for instance or visit a national task but for the supervisory rules for the a company whose isn't in commission and task to changing these some words and so to permit to attract private capital and also public company coming from southern

france from from emerging imagine economies to long term investment is little if any here were in moscow now and you are in the in the investment business in your opinion is very important for him for foreign investors what the russians want from you is well. i think investment we're increasingly last minute or somehow stimulating investment into into russian economy into russian innovation projects what the russian government especially especially focused on what do you think you can really boost investment into russian innovation projects when oil and gas are really going higher and higher day and then are forecasted to be up to hundred fifty dollars. anytime soon and is anybody going to invest in anything except one and gas industry yes this is really really

scary and they think they'd. be the same. very strong attraction there now all we have vet in these sectors came in and eyes than can be pleasing the probability to invest in another six but that. i think of a factor of city. would be conditions of investment and our other us the first is political stability. so for instance now in the arab countries of the middle india. and they get the arab problem because it we the investors. don't know if in the future we would have political stability or not the second this is the

attorney stability the third the easier it. is a regulatory framework favorable. to private investment favorable to or project financing seven are going to call a private public battering because as you know in many of these investment the it we need the in a corporation between public and private sector this is a it is a fiscal pressure not true high and the the fifth he's. a good one to be from the projects thank you thank you very much and just to remind my guest on the show was franco bass and he had of an e.p. and club of investors and the third from our listeners life will be back with more

of them coming from about the going on in and out so question until the end play and r.t. and thank you you. thank . i'm.

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