European way out of crisis

However, in order to ensure that its reaction will be positive, citizens need an acceptable political and economic system, trustworthy authorities, transparency, governmental help as well as a clear framework of operation for entrepreneurs.

Waldemar Pawlak, the Deputy Prime Minister and the Minister of Economy, who attended the panel, is optimistic. In his opinion, Poland is dealing very well with the slow-down, and our economy will quickly come back to the path of fast growth. However, in comparison with, for example, the Taiwanese authorities, our government is not doing much to help it in this task.

Chia-Ming Chang, the head of the sociology department at Soochow University, Taiwan, enumerated a long list of measures which had been implemented by the government of this country to mitigate the consequences of the crisis. First of all, the level of state investments were raised, additional incentives for small and medium-sized companies were introduced, and a five-year tax break period was introduced for start-ups.

- However, that was not all; the government has not forgotten about common citizens – assured Chang. Interest rates have been cut, the level of compulsory reserves in the central bank has been lowered in order to support lending, special loans for young people willing to purchase flats have been prepared, government guarantees for bank deposits have been raised. There were naturally also changes in taxation – today, the Taiwanese pay much lower income taxes and VAT – enumerates Chang.

- All those measures were necessary, since our GDP dropped over the last year by 3.5% and 600,000 people are looking for a job, as a result of which the unemployment rate has increased to 6% – explained the professor. – Obviously, it is too early to assess the results of all those actions, but the government hopes for a fast recovery of the Taiwanese economy – he added.

Currently, there are no countries which have avoided, to a smaller or bigger extent, the consequences of the crisis which started at the beginning of 2007 in the USA. It would also be difficult to expect that each government should fight it in the same manner. However, some actions are similar.

Akihiro Ishikawa of the Japanese University Chuo said that Japan’s government also has lowered taxes and is trying to support the economic recovery by means of liberal reforms. Unfortunately, our country is dealing also with other problems – explained Ishikawa. – We are coping with a social crisis, we have a very high divorce rate and we are wondering how we can stop destruction of families.

Michaił Deliagin, the director of the Institute of Globalisation Problems in Russia, was unwilling to mention problems of his country. He was, however, keen to enumerate all weak points of the European integration. In his opinion, the expansive policy of the European Union may come up against significant difficulties in the face of current problems. – After all, how will the Union cope with the systems weaknesses which have been so visibly exposed by the crisis, and manage to increase the number of its members with other countries which are too weak – asked Deliagin.

The recipe for solving the crisis was presented also by Mariusz Bednarski, President of Polskie Sieci Elektroenergetyczne-INFO, on his own experience during the panel “Is the European way out of the economic crisis possible?”– Accelerated investments may help deal with the problems – he explained. – Developing an ambitious investment plan for the energy sector, based on European Union’s financing and own funds, will bring great results next year. Bednarski emphasised that thanks to this solution other problems will be addressed too – employment will increase and remuneration will improve too. – If such a plan was implemented in other sectors, our economy would not feel any consequences of the crisis – said the president.

Due to the fact that this is not the case, the crisis may last even 3 to 5 years - believes Christoph Stoppok, Director of the Central Association of the Electronic and Energy Industry from Germany. – Fortunately, governments are trying not to repeat the mistakes they made during the three previous crises the world has experienced over the last 200 years.

In his opinion, the fact that governments are pumping huge amounts of money into the economy is a very good solution and will certainly bring excellent results. According to Stoppok, it is a very important element of the European way out of the crisis. Unfortunately, we do not know whether it will be sufficient to minimise its consequences soon.