The Slovenia Times

Small countries will be strongly affected by upcoming changes


These are not cyclic changes but structural changes, and some even speak of a clash of values and civilisations, Svilan said at an event dubbed Cross-Section of Knowledge, hosted by SID and publisher Finance.

"This calls for a different type of action," he said, adding that the SID bank was offering various financial instruments and consulting to make decision-making easier in the face of these changes, and offer more options for managing risks. He also urged companies to change their business models.

The debate also touched on the new president of the European Central Bank (ECB), Christine Lagarde. The CEO of the company Re-Define, Sony Kapoor said that the relationship between politicians and central banks had been easy while interest rates had been dropping.

But when banks stop creating the kind of conditions that politicians want, their independence becomes questionable, he said.

The relationship between Legarde and the new president of the European Commission, Ursula von der Leyen, will also be more difficult than in was in the previous term, Kapoor believes. But he is confident it will all work out if the two institutions have a similar vision.

Kapoor warned of the expected financial cooling, noting that there was much less room for anti-cyclical policies. The political centre that would make "healthy national decisions" is in jeopardy and coordination at the global level will also be more difficult, he said.

Otmar Issing, former ECB chief economist and member of the executive board, said Lagarde should be given a chance. Saying her predecessor had an "almost German discipline", he said Lagarde with her charm would be a welcome change at the bank.

He expressed hope that the ECB's policies would not be dictated by financial markets as so far.


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