Daniel Daianu: Causes of current financial crisis are also structural, not only cyclic

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The structural causes of the current world financial crisis are related to the fact that a financial intermediation system based mainly on banks has been replaced by a system based on the capital markets, markets that can have their own disadvantages when they are less transparent, MEP Daniel Daianu (Alliance of Liberals and Democrats for Europe, National Liberal Party) told Rompres on May 21.
 
Daianu is part of a group of 14 European politicians among which Jacques Delors and Jacques Santer, former presidents of the European Commission, former Danish PM Poul Nyrup Rasmussen, former French finance minister Michel Rocard, who signed a letter addressed to the European Commission President Jose Manuel Barroso, to the Slovenian President (the country holding the current EU rotating presidency) Danilo Turk and to the French President – to take over the EU presidency as of July 1 – Nicolas Sarkozy, in which they signal the seriousness of the world financial crisis affecting the European economy.
 
"Our letter is not only an alarm signal expressing our concerns about the evolutions on the financial markets and other markets but also a highlighting of the aspects we consider essential when the reconstructions of a surveillance and regulation system of the financial markets is conceived, system which has failed. This failure is clearly mirrored by the current international financial crisis anticipated by the warnings that accompanied other periods of crisis," Daianu said.
 
He underscored that, though the European Commission has taken some measures in this respect, the letter signed by the 14 European politicians cannot be considered redundant given that the causes of the financial crisis are not only cyclical, but also have structural motivations.
 
Prudence is an essential word, as without trust in the banking system, in the financial markets, everything is blocked. This has been obvious until the Federal Reserves, the European Central Bank and Japan’s bank had to inject big liquidities in the financial systems to unblock the situation," Daianu explained.
 
As regards the prices of food in Romania and the energy fees, Daianu said they evolve depending on what happens on a world level and thus the causes of the international financial crisis have to be judged independently from the crisis on the energy market and the increase in the prices of the food staff.
 
Daianu also highlighted the ethic aspect of the initiative of the 14 MEPs. "Not in the least, this is about the citizens’ lives. In an Europe where the economic nationalism, the populism and even xenophobia are on the rise, we have reasons to worry and that is why a joint effort from the politicians, the European Commission and the member states is needed, to find solutions to a crisis that also has structural causes and not only cyclic ones."
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