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dipsydoodle

(42,239 posts)
Fri Apr 4, 2014, 01:45 PM Apr 2014

Ukraine PM says will stick to austerity despite Moscow pressure

Source: Reuters

The Kiev government will stick to unpopular austerity measures "as the price of independence" as Russia steps up pressure on Ukraine to destabilise it, including by raising the price of gas, Prime Minister Arseny Yatseniuk told Reuters.

Yatseniuk, 39, who stepped in as interim prime minister last month after Viktor Yanukovich and his ministers fled the "Euromaidan" protests, conceded that it would be very difficult "under the current Russian presence" to undo what he described as Russia's "international crime" in seizing Crimea.

But he said Ukraine would never recognise the Russian takeover in exchange for re-establishing good relations.

>

He has called himself the leader of a "kamikaze" government, doomed by unpopular austerity measures it must take, but he said Ukraine would stick to the measures, which include doubling gas prices for domestic consumers from May 1 and holding down state pensions and salaries against a background of a 3 percent contraction of the economy and double-digit inflation.

IMF support - a $14-18 billion financial lifeline in return for tough economic reforms - would be a "tremendous step forward", he said.



Read more: http://uk.reuters.com/article/2014/04/04/uk-ukraine-crisis-yatseniuk-idUKBREA330K020140404

21 replies = new reply since forum marked as read
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Ukraine PM says will stick to austerity despite Moscow pressure (Original Post) dipsydoodle Apr 2014 OP
LOL ... he thinks they are independent. 1000words Apr 2014 #1
The truth is that, in an absolute sense, independance... reACTIONary Apr 2014 #19
An international organization is dictating how their economy is run Jake Stern Apr 2014 #2
The fun part is, that the IMF knows it doesn't work jakeXT Apr 2014 #4
heck, Reagan's own OMB director admitted *1981* that nothing they were proposing MisterP Apr 2014 #7
Yatsenyuk is an idiot ... cosmicone Apr 2014 #3
I've read an old wikileaks cable, where leaders in Ukraine think a deeper crisis is a good idea jakeXT Apr 2014 #5
Great find that Wikileaks link dipsydoodle Apr 2014 #11
That sounds familier rickyhall Apr 2014 #15
Interesting cable... reACTIONary Apr 2014 #18
Austerity measures nyabingi Apr 2014 #6
Worked for Hitler rickyhall Apr 2014 #17
Yeah, austerity always helps sakabatou Apr 2014 #8
"leader of a "kamikaze" government". Well that should unite the people of Purveyor Apr 2014 #9
Ukraine Already Suffers From Stagflation DallasNE Apr 2014 #10
The Elections In a Few Weeks Will Be Interesting, Sir The Magistrate Apr 2014 #12
He's not running for president. Igel Apr 2014 #14
Thanks for posting that davidpdx Apr 2014 #16
You know who won't be experiencing any austerity measures? YankmeCrankme Apr 2014 #13
If Yanukovich or someone like him were to have taken the Russian deal, amandabeech Apr 2014 #20
That's why he needs fascism. To impose austerity. Lars28 Apr 2014 #21

reACTIONary

(5,770 posts)
19. The truth is that, in an absolute sense, independance...
Sat Apr 5, 2014, 02:47 PM
Apr 2014

... does not exist. No country is independent of the world-wide economic, political and social context in which they exist. Becoming aligned with the EU and moving towards Western style liberal democracy is in their best interest and will lead to greater (not absolute) economic and political independence than the Potemkin "Eurasian Union" concocted by the Russian Federation as a front organization for their imperial ambitions.

Integration into the successful sphere of the global economy is their best choice.

Jake Stern

(3,145 posts)
2. An international organization is dictating how their economy is run
Fri Apr 4, 2014, 02:42 PM
Apr 2014

and they call that "independence"?

What a way to twist a word.

jakeXT

(10,575 posts)
4. The fun part is, that the IMF knows it doesn't work
Fri Apr 4, 2014, 02:52 PM
Apr 2014

IMF: Austerity is much worse for the economy than we thought

...

How did the IMF figure this? That was the tricky part. Blanchard could have just plotted a simple graph showing that countries undertaking heavy austerity measures, such as Greece and Portugal, are faring more poorly than their peers. But that doesn't actually prove anything—perhaps those countries are undertaking austerity because they'd run into economic trouble.

So, instead, Blanchard did something more subtle. He studied the IMF's previous economic forecasts. If a country is already struggling for other reasons, the forecasters are likely to have taken that into account. And what Blanchard found was surprising: IMF forecasts have been consistently too optimistic for countries that pursued large austerity programs. This suggests that tax hikes and spending cuts have been doing more damage to those economies than policymakers expected. (Conversely, countries that engaged in stimulus, such as Germany and Austria, did better than expected.)

http://www.washingtonpost.com/blogs/wonkblog/wp/2012/10/12/imf-austerity-is-much-worse-for-the-economy-than-we-thought/

MisterP

(23,730 posts)
7. heck, Reagan's own OMB director admitted *1981* that nothing they were proposing
Fri Apr 4, 2014, 03:29 PM
Apr 2014

was intended to help the economy in any way: it was just a Powellite way to strengthen the strong and enrich those with more money than they could do anything with

alas these anarcho-capitalists gradually took over the airwaves and then the GOP, bringing their ideology to millions despite obvious lack of results AND THEIR OWN ADMISSIONS

 

cosmicone

(11,014 posts)
3. Yatsenyuk is an idiot ...
Fri Apr 4, 2014, 02:45 PM
Apr 2014

Disenchanted and deprived people are a sure fire way to start massive unrest and balkanization of Ukraine. Pretty soon the average Ukrainians would not want to sacrifice for a neonazi/fascist agenda.

jakeXT

(10,575 posts)
5. I've read an old wikileaks cable, where leaders in Ukraine think a deeper crisis is a good idea
Fri Apr 4, 2014, 03:11 PM
Apr 2014

5. (C) Although elections would delay reform for a few more months, Pynzenyk thought a new parliament would be more likely to implement reform. He understood that this could delay the return of the IMF to Ukraine; but, Pynzenyk argued that the country could get through the next six months on its reserves, particularly if no new budget were adopted. The lack of a budget limited the government,s ability to spend, he said. In fact, Pynzenyk argued that pushing the country into a deeper crisis could actually be a benefit because voters and the leaders would feel the need for change more acutely.

https://www.wikileaks.org/plusd/cables/10KYIV278_a.html

reACTIONary

(5,770 posts)
18. Interesting cable...
Sat Apr 5, 2014, 02:33 PM
Apr 2014
7. (C) Pynzenyk appeared to deliver his message not in anger, but in sorrow for the country and in frustration at his inability to convince Tymoshenko to take advantage of the opportunity presented by the economic crisis for reform. His indictment of Tymoshenko was particularly damning coming from a man who saw it all from the inside. Pynzenyk is not an oligarch but an economics professor, one of the few we have found in high-levels of government in Ukraine. It is unfortunate that Tymoshenko,s unwillingness to make the hard decisions has cost the country dearly, not only in terms of larger deficits, greater public debt, and declining GDP, but also in that she has driven out intelligent, reform-minded officials, such as Pynzenyk.

He sounds like a patriotic individual with the best interest of his country in mind and the knowledge to make good decisions. Ukraine could have benefited from his council, and if they had followed this advice back then they would be much further ahead today.

nyabingi

(1,145 posts)
6. Austerity measures
Fri Apr 4, 2014, 03:26 PM
Apr 2014

help create the conditions for the rise of fascism - look at the example of Greece and the rise of the Golden Dawn movement. In exchange for his PM position in the post-coup government, "Yats" agreed beforehand to implement IMF austerity and he's keeping his promises to the US and EU. What a good puppet he's turning out to be!

 

Purveyor

(29,876 posts)
9. "leader of a "kamikaze" government". Well that should unite the people of
Fri Apr 4, 2014, 04:24 PM
Apr 2014

Ukraine and build confidence, indeed.

DallasNE

(7,403 posts)
10. Ukraine Already Suffers From Stagflation
Fri Apr 4, 2014, 04:38 PM
Apr 2014

So how does increasing the "stag" through austerity improve the situation. Sounds more like a crackdown on corruption would do a whole lot more good.

The Magistrate

(95,247 posts)
12. The Elections In a Few Weeks Will Be Interesting, Sir
Fri Apr 4, 2014, 04:55 PM
Apr 2014

The life-span of a mayfly comes to mind for this fellow, as a governing influence....

Igel

(35,320 posts)
14. He's not running for president.
Fri Apr 4, 2014, 07:53 PM
Apr 2014

Said he wasn't interested in it.

Then again, that's what Tymoshenko said.

Yesterday or the day before he bailed from Bat'kiwshchyna.

Here's the president-candidate list.

http://ua.korrespondent.net/ukraine/politics/3344029-ofitsiini-kandydaty-na-post-prezydenta-ukrainy-spysok

davidpdx

(22,000 posts)
16. Thanks for posting that
Fri Apr 4, 2014, 09:46 PM
Apr 2014

Do you know is it the person who gets the most votes or do they need more than 50%? That is a lot of candidates if 50% were needed I would guess there'd be a run off.

YankmeCrankme

(587 posts)
13. You know who won't be experiencing any austerity measures?
Fri Apr 4, 2014, 05:01 PM
Apr 2014

Yatseniuk and his friends. I'm sure they'll be living quite comfortably. He definitely won't be giving up any of his wealth for the good of the country.

 

amandabeech

(9,893 posts)
20. If Yanukovich or someone like him were to have taken the Russian deal,
Sat Apr 5, 2014, 02:58 PM
Apr 2014

and would have been a member of Putin's Eurasian trading bloc,

do you think that Putin would have levied and collected claims against all wealthy Ukrainians?

I think not.

I don't like the oligarch system, and we are quickly developing it here, which I very much don't like.

But I don't think that the IMF deal is different from the Putin deal in its fiscal treatment of the uber-wealthy.

 

Lars28

(84 posts)
21. That's why he needs fascism. To impose austerity.
Sat Apr 5, 2014, 06:32 PM
Apr 2014

As a famous political writer once said, "The capitalist likes fascism about as much as a man with an aching molar likes to go to the dentist." But if you're going to cut wages, raise the retirement age, raise taxes, etc., you need an authoritarian state to carry this out.

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