Ilmars Rimsevics

Europe is prepared for both scenarios of event development in Greece – its remainder in the Eurozone, and its exit from it, president of the Bank of Latvia Ilmars Rimsevics notes.

Nevertheless, he also admits that it is necessary to wait for the results of the parliamentary elections in Greece, and see what government will be formed in Greece.

Rimsevics said that, he does not envy any government of a country with an empty treasury, and where residents go on strikes and continuously protest.

When asked about the impact of adversity of Greece on the Eurozone as a whole, Rimsevics replied with a comparison: «If there is one failed student in a classroom, who does not care – to copy the work of someone else  or to plan cards on the last bench, talk on the phone, and if he does not care whether he is transferred to another class, it does not mean that his class should be terminated and the school demolished.» In Rimsevics’ point of view – talking about the collapse of the Eurozone is primitive and rude.

The President of the Bank of Latvia added that he has not seen a more serious institution than the European Central Bank and the European Monetary Union. Germany, the Netherlands and other countries will do everything in their power to protect the monetary union, as the Bank of Latvia president expresses hope.

If Greece leaves the Eurozone, financial markets will be in «total confusion» for six months, Rimsevics says. However, he added: if Greece exits from the Eurozone, other countries will also see what is going on, and Spanish, Italian and Portuguese governments will need to draw conclusions form all this. «Right now, the government attempts to ensure its popularity on the expense of the future generation, and does not want to do what it necessary, hoping that everything will just sort itself out,»- Rimsevics explained their desire to live beyond their earnings.

Rimsevics admits that, right now, Latvia is undergoing a «total confusion» in relation to the introduction of Euro, which clearly shows that the bank itself also provided little explanations. He claims that the recently voiced opinion that by entering the Eurozone Latvia basically gets on board of the Titanic – is nonsense.

Ref: 104.109.109.2148