Former EU President, Italy PM: Russia Economic Slump Is Bad for Italy

Romano Prodi doesn't sound like a fan of sanctions. Notes that American export to Russia has actually grown

Mon, Jan 5, 2015
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One of the most recognizable politicans in Europe. President of European Commission 1999-2004. PM of Italy 1996-98 and 2006-08.

ROME, January 4 (TASS) - Weaker Russian economy is extremely unprofitable for Itary, former head of the European Commission, Italy’s former Prime Minister, Professor of Economics Romano Prodi told Messaggero newspaper.

Lowered prices in the international energy markets have positive aspects for the Italian consumers, who pay less for the fuel, but the effect will be only short-term. In the long-term however the weaker economic situation in countries producing energy resources, caused by lower oil and gas prices, mostly in Russia, is extremely unprofitable for Italy, he said.

“The lowering of the oil and gas prices in combination with the sanctions, pushed by the Ukrainian crisis, will drop the Russian GPD by five percent per annum, and thus it will cause cutting of the Italian export by about 50%,” Prodi said.

“To let alone uselessness or imminence of the sanctions, one should highlight a clear skew: regardless of the rouble rate against dollar, which is lower by almost a half, the American export to Russia is growing, while the export from Europe is shrinking.”

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Among economic risks for Italy and Europe, Prodi names unpredictable development of the political situation in Greece, weaker German economy as well as phenomena of financial markets which are impossible to predict.

 

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