POLITICAL CHIEFS shuffled the doom-and-gloom performers from the world of business off the stage at the Davos economic festival yesterday, as government leaders, heads of state and central bankers aired their views on what needs to be done to fix the world, encourage co-operation and save capitalism.
Delegates were still talking yesterday about the performance of Russian prime minister Vladimir Putin in a keynote address on Wednesday night. Putin, who is travelling with a large security entourage in 20 SUVs, took the opportunity to thumb his nose at the US, which he blamed for the global financial meltdown.
He berated US delegates who spoke last year about the US economy’s “fundamental stability and its cloudless prospects” and seemed to enjoy declaring that “investment banks, the pride of Wall Street, have virtually ceased to exist”. In a fascinating exchange, Putin was praised in a follow-up discussion by Dell computer founder Michael Dell, who enthused about Russia’s scientific and technical proficiency and asked: “How can we help?” Putin replied: “We don’t need help. We are not invalids. We don’t have limited mental capacity.”
As concerns linger at Davos about the future of the euro, European Central Bank president Jean Claude-Trichet dismissed suggestions that the currency could collapse from pressure on the public finances of certain countries. Italy and Greece were named in yesterday’s debate, not Ireland.
Taoiseach Brian Cowen arrived in Davos and attended a dinner with international corporate executives where he is “redoubling” efforts to attract investment and jobs into Ireland.
He should have been listening to Swedish prime minister Fredrik Reinfeldt. Sweden has been held up as a model country which saved its banking system without losing any money for the Swedish taxpayer. The Nordic state created good and bad banks, separating dodgy assets from the good ones, and part-nationalised their banks before later selling them on at a profit. “Not all my voters are in love with the banking system in Sweden,” he said. “You had to solve the banks’ problems, take away their problems, lift off their risk and give them money. You might get happy banks but you won’t be re-elected. That is a lesson to remember.” Cowen and Minister for Finance Brian Lenihan would have listened intently.
