Europe Debt Crisis Likely

Russian ex-finance minister Alexei Kudrin said on Wednesday he believes a serious debt crisis is likely in Europe.

“The scenario of a debt crisis, growth slowdown and a drop in oil demand is 40 percent likely,” Kudrin told the Rossiya 24 TV channel.

“Large corporate structures in Europe and around the world have already calculated this scenario and are trying to get ready for it,” he said.

“Our country and government should also be ready for such scenarios,” Kudrin said.

Kudrin said Italy’s debt problems could trigger the unfavorable development of the situation. In order to avoid it, he said, the Italian economy should resume its growth with the help of global financial institutions.

A longtime ally of President-elect and Prime Minister Vladimir Putin, Kudrin, 51, resigned as finance minister and deputy prime minister last year following a row with now outgoing President Dmitry Medvedev over budget issues including rising defense spending.


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