Interview by Emilia Slabunova, Expert magazine, 29.01.2016

The magazine Expert asked YABLOKO Chair Emilia Slabunova a number of questions about the key economic and political priorities for 2016. The election campaign and the elections to the State Duma in the Fall will be the most important events of the year.

Expert: Should the law on the Central Bank be amended so that it would envisage Bank’s responsibility for economic?

Slabunova: It does not make any sense. According to Article 4 of the Law “On the Central Bank” the monetary policy “is developed and carried out” “in cooperation with the Government”. This is the instrument the Central Bank uses so that to influence the economy. And, according to the law, it is not the only instrument. There is no need to introduce the norms into the law that will not add anything [to the functionality of the Bank] and will not facilitate the solution of the current economic problems of our country.

In addition, today we are facing the problem of a drop of the GDP by 4 per cent as of 2015, rather than “economic growth”. This is a very large drop. And the government has to solve this problem.

Expert: Do you think that it is necessary in the present socio-economic situation to amend the policies of the government, and if changes are needed, what changes should be made?

Slabunova: The first and the key decision should be made by President: the foreign policy should be changed policy in such a way so that economic sanctions against Russia are cancelled. Most importantly, we need access to the global capital markets. This is a very important condition for the earliest possible stop the recession and the subsequent recovery. This decision should be taken as soon as possible.

The government’s fiscal policy should serve to the objectives of stopping the economic recession. Today they are discussing sequestration of the recently adopted federal budget by 10 per cent. Does the government realize that it may affect the economic recession? WE do not hear from the Government any concerns in this respect, as if such a problem does not exist.

The preset budget is with deficit 3 per cent of the GDP. In absolute terms, this is about 2.4 trillion roubles. A cut by 10 per cent makes about 1.6 trillion roubles. The question is in the degree – what deficit we can afford. There is the Reserve Fund and, at worst, the National Welfare Fund. They can be used as sources for covering additional deficit. If we adopt a more moderate proposal, then it makes sense at least not to cut the expenditure part so dramatically, or not to cut it at all.

Opening the access to the international capital markets for the country and controlling the recession by means of fiscal policies – that is what I consider the top priority.

Expert: What is your opinion, which political agenda will dominate the election campaign and the primaries of the [ruling] United Russia [party]? Will the crisis affect the results of the parliamentary elections and the political situation in the country in general?

Slabunova: The crisis will obviously affect it and has already been affecting it. Drop of real incomes and living standards will enhance the protest moods. Socio-economic issues will dominate election campaigns. I think that United Russia may face an acute question of the efficiency of governing at its primaries.

Expert: What do you expect from the new composition of the State Duma? Do you think that the mechanisms of primaries and general attention to the political competition will lead to the emergence of new persons, ideas and competences in the big-league politics?

Slabunova: For our country, it is already vital that the parliament would have strong real opposition. Our party has been preparing for elections and we will spare no effort to ensure that the YABLOKO faction emerges in the State Duma. The emergence of new leaders and, consequently, ideas and competences will be facilitated by free political competition, equal conditions for all the political forces in media coverage and fair elections, rather than primaries.

Source: http://expert.ru/2016/01/19/obnovlenie-ili-haos/?ny