Europe ruined dependency

While in Europe not to work more profitable than working, "bury the European social model too early"; Although the WTO has been stagnation, that is no reason to break it, the IMF needs reform, but not a replacement, says Putin

The key to the current problems in the European economy is not social policy, and its inefficiency, the president Vladimir Putin. He stated this in an interview to "RIA Novosti". According to him, European countries faced with the consequences of living beyond their means, the loss of control over the state of the economy and structural distortions. "In addition, in many European countries flourished dependency, which often does not work - much more profitable than working, - Putin said. - It threatens not only the economy but also the moral foundations of society. It is no secret that many citizens of the less developed countries come to Europe specifically to "sit" on welfare, as it is called in Germany. For Russia, this approach is unacceptable ».

However, Putin said that "bury" the European social model is too early. Now, he said, the leading European countries carry out structural reforms to increase the competitiveness of their economies are struggling with unemployment, and their approach to fiscal discipline becomes more flexible due to the strengthening of coordination of fiscal and economic policy.

Also, the president did not agree with the opinion that it is necessary to make a choice: social or economic competitiveness. He believes that the cost-effectiveness of the state linked with the abandonment of social obligations taken correctly. "After taking care of the population, its social protection - one of the most important functions of the state - believes Putin. - And possible rejection of it jeopardize
threat to the very existence of the state as such institution. " He explained that if the people will not trust the government, you can not talk about any sustained economic growth.

In Russia, he said, the welfare state - "is not a whim but a necessity, because for many years were not met, and still do not fully meet its obligations to the most vulnerable populations." The current leadership of the country is trying to develop a balance "between decent pay in the public sector, the normal pension system, quality public services, including education and health, and prudent fiscal policy measures to stimulate the economy».

In the same interview, Putin said that the World Trade Organization (WTO) stagnated, but this fact - not a reason to break this structure. The President believes that it is necessary to strengthen and develop. He said that Moscow WTO is considered as "the foundation on which is based the whole system of world trade rules" and called as soon as possible to complete the Doha Round of trade talks, which aims to solve existing trade conflicts between countries with different levels of economic development. According to the president, Russia should "make maximum use of the tools of the WTO to protect its trade and economic interests" and not allow partners to use unfair methods of competition. Putin noted that the individual partners in the WTO "unreasonably denies access for Russian goods on the domestic markets of mineral fertilizers, chemicals, petrochemicals, automotive fuel, pipe and steel industry." This he called "work situation" and gave examples of trade disputes and litigation between them other countries.

Talking about the reform of the International Monetary Fund (IMF), Putin said that the fund does not have time to react quickly to changing circumstances and needs serious reforms, but the creation of new structures will not solve the problem. According to him, it's time to "raise the question of a comprehensive restructuring fund, bringing it into line with current economic realities" and, above all, need to "restructure the system of allocation of quotas and votes in the IMF" in favor of increasing the role of developing countries, including Russia's partners BRICS. The president promised that the Russian side will try to convince partners to find compromises and reach mutually acceptable solutions to the St. Petersburg summit of the "twenty".