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Former Russian Finance Minister Urges New Cabinet To Take 'Unpopular Steps'
Interfax - 5.25.12 - JRL 2012-97

Kazan, 25 May: Former Russian finance minister and chairman of the Civic Initiatives Committee (CIC) Aleksey Kudrin fears that the new Russian government would not have enough political will to conduct a number of reforms.

Aleksey Kudrin file photo
file photo
"The new Russian government is quite professional, but this government should have political will to conduct a number of reforms and not fear certain, perhaps unpopular steps," Kudrin said at a news conference in Kazan on Friday (25 May).

However, in his opinion, the government has already shown that it "is afraid and is guided by populist steps".

"I fear that there will not be enough political will to conduct reforms, this is what worries me. Then it will turn out that, despite the fact that this is a government of professionals, it will not reach effective results," Kudrin said.

Speaking about a possible duration for the work of the new government, Kudrin does not rule out a five-year term.

"It could also sit for five years. Only if there is a deep economic crisis, then there is a serious factor for it to work less. Otherwise, I'm not planning for its term to be smaller," he said.

Answering a question as to what recommendations he would give to the new Russian government in connection with a possible new global crisis, Kudrin named three main ones from a set of short-term ones.

"Firstly: not to increase state spending. One should not expand what will have to be cut in two years," he said.

The second thing is, in his opinion, control over the financial sector. "This is the most sensitive sector, which is the first to receive a blow during a global crisis. Last time we managed by primarily supporting banks, because it is precisely them that provide loans. Everyone should be confident that banks will withstand it, that the state will help," he explained.

Thirdly, Kudrin believes that the government should keep the reserve. "The reserve has now somewhat decreased; now, while (oil) prices are high, it should be boosted," the former minister said. If it is very difficult, he explained, then this reserve "will make it possible to create the so-called fiscal package of support for supporting the economy". (Passage omitted: further details)

Keywords: Russia, Government, Politics - Russia, Economy, Business, Investment, Trade - Russian News - Russia

Kazan, 25 May: Former Russian finance minister and chairman of the Civic Initiatives Committee (CIC) Aleksey Kudrin fears that the new Russian government would not have enough political will to conduct a number of reforms.

Aleksey Kudrin file photo
file photo
"The new Russian government is quite professional, but this government should have political will to conduct a number of reforms and not fear certain, perhaps unpopular steps," Kudrin said at a news conference in Kazan on Friday (25 May).

However, in his opinion, the government has already shown that it "is afraid and is guided by populist steps".

"I fear that there will not be enough political will to conduct reforms, this is what worries me. Then it will turn out that, despite the fact that this is a government of professionals, it will not reach effective results," Kudrin said.

Speaking about a possible duration for the work of the new government, Kudrin does not rule out a five-year term.

"It could also sit for five years. Only if there is a deep economic crisis, then there is a serious factor for it to work less. Otherwise, I'm not planning for its term to be smaller," he said.

Answering a question as to what recommendations he would give to the new Russian government in connection with a possible new global crisis, Kudrin named three main ones from a set of short-term ones.

"Firstly: not to increase state spending. One should not expand what will have to be cut in two years," he said.

The second thing is, in his opinion, control over the financial sector. "This is the most sensitive sector, which is the first to receive a blow during a global crisis. Last time we managed by primarily supporting banks, because it is precisely them that provide loans. Everyone should be confident that banks will withstand it, that the state will help," he explained.

Thirdly, Kudrin believes that the government should keep the reserve. "The reserve has now somewhat decreased; now, while (oil) prices are high, it should be boosted," the former minister said. If it is very difficult, he explained, then this reserve "will make it possible to create the so-called fiscal package of support for supporting the economy". (Passage omitted: further details)


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