Notre Europe: Tommaso Padoa-Schioppa on the Financial Crisis

Tommaso Padoa-Schioppa on the Financial Crisis - La Stampa

Tribune | 17/09/2008

Interview with Stefano Lepri, La Stampa, 17 September 2008

Q. Wall Street investment banks go broke or struggle to survive; Communist China has enough dollars in its coffers to buy them all. To what kind of world globalization is leading us to?

A. «Globalization is in fact at a crucial juncture, made more difficult by too long delays in adopting corrective actions. Today's difficulties arise from three sources: financial instability, dearth of savings in the US, rise of Asia both as a low cost producer and a voracious consumer of fuel and food. The financial turmoil is only a part of the larger picture».

Q. Some years ago, globalization critics were pointing to the danger of a thoroughly Americanized world. On the contrary, the US is losing weight in the global economy.

A. «In the next few years, I believe, US contribution to global growth shall become scant. If a country needs to save more - it's quite obvious - its growth slows».

Q. After 1991, in a unipolar world, US power appeared bound to no limits. Wall Street investment bankers, too, were confident to them everything was allowed?

A. «Business people aren't always able to keep their heads cold when their business is in full flourish. It would be sad, though, if the current turmoil turned to arrogance all those who didn't make big mistakes up to this point»...

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Tommaso Padoa-Schioppa

Tommaso Padoa-Schioppa died on 18th December 2010 in Rome. He was 70 years old. He was President of Notre Europe and Chairman of Promontory Europe. He was appointed by Greek Prime Minister Counsel for issues related to management of the economic crisis and public debt in the financial system on August 3, 2010. He was Chairman of the Trustees of the IFRS Foundation & International Financial Reporting Standards. He was Italian Minister of Economy and Finance (2006-08) and Chairman of the Ministerial Committee of the International Monetary Fund (IMFC, 2007-2008). He was a former Chairman of the Trustees of the IASC Foundation (International Accounting Standard Committee, 2005-2006). In 1998-2005 he was member of the first Executive Board of the European Central Bank. Previously he was Chairman of Commissione Nazionale per le Società e la Borsa (CONSOB, 1997-98), Deputy Director General of the Banca d'Italia (1984-97) and Director General for Economic and Financial Affairs at the Commission of the European Communities (1979-83). He has been Joint Secretary to the Delors Committee (1988-89), Chairman of the Banking Advisory Committee of the EC (1988-91) , Chairman of the Basle Committee on Banking Supervision (1993-97) and Chairman of the Committee on Payment and Settlement Systems (2000-05). He graduated from the Luigi Bocconi University and has a M.Sc. from the Massachusetts Institute of Technology.

In view

The EU and the Financial Crisis by Tommaso Padoa-Schioppa

Notre Europe's viewpoint | 14/10/2008

In the last few weeks the financial turmoil originated in the United States in the spring of 2007 has precipitated the world economy in the worse crisis since the end of World War II. At this moment it is hard to assess whether the current wave of panic has come to an end and what shape the financial system and the global economy will take after its passage. From a European perspective, however, two elements are emerging with great clarity.