President of the Latvian private bank Rietumu, Alexander Pankov takes part in Euro Finance Week in Frankfurt.
Euro Finance Week is being held in Frankfurt for the 16
th time. Its central event will be the 23
rd European Banking Congress which is scheduled for tomorrow – this year its motto will be “The Future of Europe”. Among the participants of the Congress will be the senior management of the European Central Bank, Bundesbank, Deutsche Bank and Commerzbank, spokespersons from Harvard, Cambridge, the Institute of International Finance in Washington and a number of other institutes, as well as European politicians. Similarly to last year, the President of Rietumu Bank is also a participant in the forum this time.
Today Alexander Pankov took part in the discussion at the congress dedicated to Central and Eastern Europe. The subject of the forum is “Changing CEE – The Quest for Growth”. Within the framework of the discussion on the impact of the crisis on the common European currency (“Impact of the Euro Crisis: Is the Euro Still Attractive?”), the ways of solving problems in countries of the region and the influence of the taken decisions over the long-term were discussed, as well as issues of further harmonisation of the financial sector, and the current status and prospects for the euro.
In the course of the discussion, Alexander Pankov noted that the example of Latvia is illustrative evidence of the possibility of overcoming the crisis without devaluation of the national currency (external devaluation). The government of the country chose an alternative method – the so-called internal devaluation strategy, which includes strict saving measures on the state level and the reduction of expenses and consumption. According to Mr Pankov, “The practice has confirmed that, in the event of internal devaluation, productivity increases faster than the nominal incomes of the population decrease. Furthermore, when performing structural reforms, speed and discipline play a crucial role.”
Speaking about the introduction of the euro in Latvia from 1 January 2014, Mr Pankov noted that for such a small and open economy, the advantages of joining the eurozone by far surpass the potential negative consequences. “Further expansion of the EU and, as a consequence, the eurozone, alongside the increasing mobility of the labour force, is the key factor for the reduction of unemployment and the acceleration of economic growth. In such a case, both the existing and new members of the EU are winners,” emphasised the President of Rietumu Bank.
Euro Finance Week, which is traditionally arranged in autumn in Frankfurt, is one of the most prestigious international financial forums. It gathers together leading specialists in the banking area, politicians, experts and scientists. Eleonora Gailisha Mass Media and Public Relations
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