Zhu Min: Europe'S Main Task Is To Prevent The Spread Of Sovereign Debt Crisis To Banks.

Zhu Min, vice president of IMF, accepted the exclusive dialogue with Phoenix Network on 15 th. The main task of Europe is to prevent the spread of sovereign debt crisis to banks.

It is important to let banks rebuild their capital space.

Barroso, chairman of the European Commission, will be presented to the euro area.

German Foreign Minister Guido Westerwelle has expressed opposition to the euro bond plan because it believes that debt crisis can not be solved through simplifying debt obligations.

The following is the pcript of the text:

Phoenix website: we get the latest news that the chairman of the EU executive committee Barroso said that it would submit a proposal to issue eurozone unified bonds as soon as possible, but this proposal was immediately opposed by the German Foreign Minister and opposed the unification of Euro bonds.

How do you evaluate this?

Zhu Min: now on the whole economic situation in Europe, the most important thing now is to prevent the crisis of sovereignty from spreading to the bank crisis, and the crisis of sovereign debt to the banking crisis. Because banks hold bonds and hold each other's problems, it is very important to enable banks to rebuild the space of capital. This is a very important point.

So on this basis, the EU held a meeting in July 21st, that is, the decision to expand and use flexibility. Our name is EFSF, which is the economic mechanism of Europe. This is a very important aspect. So we think it is very important to continue to make the EU discuss the resolution in July 21st and expand the function and flexibility of EFSF.

Phoenix: as we can see, in other words, some emerging market countries, Brazil's foreign minister also stated that they would jointly buy emerging European countries to buy European bonds or help European countries. How do you evaluate this move?

Zhu Min: today, a particularly striking feature of global economic and financial is mutual correlation. In fact, the global economy is closely linked, so in this case, anything in Europe.

Phoenix: when we interviewed Mr. Li Daokui, an expert member of the central bank's monetary policy committee yesterday, he also said that if we want to save Europe, Europe must first save itself. But unfortunately, we do not see the willingness of European countries to save themselves, or adopt a more effective way to save themselves. What do you think of this view?

Zhu Min: in the whole helping and solving the existing situation, there are always two parts, one is about the support of liquidity, and the other is to alleviate a short-term difficulty. This is a part of our fund, including the European Union's policies on some European countries.

But at the same time, these countries themselves have to make structural reforms themselves, and put forward a favorable plan for fiscal retrenchment to reduce this long-term deficit, so as to establish their own trust and make the market have confidence in him, so that he can re-enter the market financing. So these two aspects are complementary to each other, which is beneficial and effective for his own internal reform, the medium-term fiscal plan, the promotion of economic growth and the support of short-term liquidity, so we must take this as a whole to solve this problem.

Phoenix: there are also several points of view, for example, countries like Greece, which are more sovereign debt, or countries like Portugal, Spain and Italy, they suggest that they should withdraw from the euro area. Do you think this withdrawal is a good way to break the arm and save themselves?

Zhu Min: since the sovereign debt crisis in Greece, the Greek government has been very active in putting forward various plans to work with our fund and the European Union to solve the common problems.

We feel that the efforts of the Greek government are very good and deserve further encouragement. If the government continues to work hard, the Greek problem can still be solved with the support of the European Union and our IMF.

Phoenix website: we also know that in fact, in this economic crisis, financial crisis or financial crisis, three international rating agencies have issued their own different voices during the second financial crises. The latest news is that Moodie has lowered the rating of two French banks. What kind of influence do you think this will have?

Zhu Min: rating agency's rating is a very important part of the global financial system. Therefore, how to supervise and reform the rating agencies in the whole process of global financial supervision is also a very important topic.

The rating agencies themselves have ratings of enterprises and different bond products according to their research, reasonable and reasonable. At the same time, they should also strengthen supervision over the global rating agencies throughout the world.

Phoenix: now we look back at the situation in the United States and the United States. We know that in fact, his unemployment rate is still high, including the capital market is relatively low. But there is a recent data, his consumption data is still good. How do you see his quantitative easing in the United States, and the possible implementation of QE3 in the future?

Zhu Min: the U.S. economy is still facing great difficulties, mainly growth. He has the demand for restructuring the balance sheet. It is more of a growth issue, because the company's balance sheet has improved greatly since the crisis. Now it is the residents' assets and liabilities table that needs further reduction.

Economic growth has become a major policy issue in the United States. Especially the unemployment rate is high. From the perspective of the whole economic growth, the US government has also proposed a new employment law, involving 447 billion dollars. This is also a big case, hoping to promote economic growth.

The Federal Reserve has to maintain this low level before the middle of 2003. From this global perspective, because the US is still the largest economy in the world, the US consumption is still the biggest demand in the world. Therefore, the strong growth and recovery of the US economy is beneficial to the global economy. Therefore, we feel that the new employment law introduced by the US government is still a good thing.

But at the same time, we should also see that when launching the new employment stimulus plan, it is also important to take out the medium-term budget plan so as to further restore the financial level to a healthy level.

Phoenix: that is to say, IMF will soon or may be implemented in the United States.

Zhu Min: we think that, in the us today, if he has a relatively loose monetary policy to maintain economic growth, it is still good for the global economy.

Phoenix: the last question, what we would like to ask is what will be done in the next round of IMF in the next round of world economic turmoil and profound changes in the world financial order, to maintain a relatively stable development of the global financial and monetary market?

Zhu Min: from the International Monetary Fund's situation, we are working hard to make several big reforms. Under the leadership of our new president, one is to shift our global supervision from bilateral to multilateral. This is a big change. Then, through more understanding of the interaction between economies, the quality of our global supervision can be further improved. At the same time, we will further develop our products, that is, the flexibility of lending products, so that we can help those countries in need as quickly as possible under the circumstances of fluctuations. At the same time, further strengthening the stimulus structure is also a very important aspect of us.