WEBVTT - LCPR's Eppink Says Draghi's Stimulus Plans Will Not Work(Audio)

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<v Speaker 1>Bill Maloney, Charlie Okay, thank you very much, Bill Maloney.

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<v Speaker 1>And to hear live breaking news over here, Bloomberg Time Squawk.

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<v Speaker 1>Charlie Pellock. That's a Bloomberg business flash. This is taking

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<v Speaker 1>stock with Kathleen Hayes and Grim Fox on Bloomberg Radio.

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<v Speaker 1>Mario Draggy, the European Central Bank and interest rate policy

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<v Speaker 1>to stimulate the economies of Europe. Here to tell us

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<v Speaker 1>more is Dirk jon Epink. He is a journalist and

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<v Speaker 1>a Senior Fellow at the London Center for Policy Research.

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<v Speaker 1>He can be followed on Twitter at d j E

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<v Speaker 1>E p I n K and he also happens to

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<v Speaker 1>be the author of a book entitled Empire of Little

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<v Speaker 1>Kings inside the European Parliament. Thanks very much for spending

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<v Speaker 1>time with us, Thank you for having me. Now just

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<v Speaker 1>before we get into Mario drag in the U San

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<v Speaker 1>Central Bank, and so one just get people a snapshot

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<v Speaker 1>of what is it like to actually work inside the

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<v Speaker 1>European Parliament. What would be Is there an anecdote or

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<v Speaker 1>a story that best describes the because I've read the

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<v Speaker 1>book and I note that, you know, there are a

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<v Speaker 1>couple sort of idiosyncrasies, like try getting elected as a

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<v Speaker 1>member of the European Parliament from a country of which

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<v Speaker 1>you are not a native. That's yes, that's actually what

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<v Speaker 1>I did. I was the first Dutchman to be elected

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<v Speaker 1>in Belgium for the European Parliament, and legally spoken, it's possible,

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<v Speaker 1>because the European Parliament even supports that sort of legislation

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<v Speaker 1>to get elected in another country. But of course with

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<v Speaker 1>all these different cultures, it's very difficult to get elected.

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<v Speaker 1>You have to first of all speak the language and

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<v Speaker 1>set corently, you have to live there for quite some

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<v Speaker 1>time to show people that you are part of their

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<v Speaker 1>world and actually show them the least I was going

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<v Speaker 1>to show the police that well, yes, actually I had

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<v Speaker 1>to show the police in Belgium that I was really

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<v Speaker 1>living in Belgium at a home there. So it's altogether.

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<v Speaker 1>It's not not easy. For example, a Dutchman elected in

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<v Speaker 1>Belgium is difficult. I think it would be impossible for

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<v Speaker 1>a German to get a German to get elected in Holland,

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<v Speaker 1>or for for somebody from Ireland to get elected in

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<v Speaker 1>the United Kingdom, or somebody from Spain to get elected

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<v Speaker 1>in Portugal. Sold there there are in general seven hundred

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<v Speaker 1>and fifty members of European Parliament, but only a few

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<v Speaker 1>of them are re elected, really elected in a country

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<v Speaker 1>which is not the country of their nationality. You had

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<v Speaker 1>to change your accent, yes, because you know where Dutch

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<v Speaker 1>and Flemish are basically the same language. But there is

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<v Speaker 1>a difference in intonation, which you would also find in

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<v Speaker 1>the United States between a New york Or and somebody

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<v Speaker 1>from Tennessee or from Texas. So if as if as

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<v Speaker 1>a New Yorker, you want to be elected in Texas

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<v Speaker 1>or you would have a constituency in Tennessee, you have

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<v Speaker 1>to slightly adapt your your accent, and the same thing

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<v Speaker 1>you have to do in in Europe, because if a

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<v Speaker 1>New Yorker like Trump wants to get elected in Tennessee

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<v Speaker 1>and he sounds like Trump, then people will say well,

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<v Speaker 1>he's not really from here, um is he part of us?

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<v Speaker 1>So you get questions what as you have to get

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<v Speaker 1>their votes, so you have to create confidence. Talking about vote,

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<v Speaker 1>what has been your reaction to the vote in the

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<v Speaker 1>United Kingdom to leave the European Union. Well, there's something

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<v Speaker 1>I really fear that would happen, because in the end

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<v Speaker 1>the British were mobilizing all their celebrities to get the

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<v Speaker 1>remains side to win, and I thought, when they have

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<v Speaker 1>to do that all the time, something is wrong there.

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<v Speaker 1>And particularly I was very worried about the vote of

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<v Speaker 1>of lower income people and voters because the driving force

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<v Speaker 1>of that election, or that referendum rather was was was immigration.

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<v Speaker 1>And although the British have their own immigration system, they

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<v Speaker 1>got their borders, they are not part of an open

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<v Speaker 1>space of free circulation of people. They were under the

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<v Speaker 1>impression that this flow of people that came to Europe

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<v Speaker 1>last year as over two million to Germany only would

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<v Speaker 1>finally also come to the UK. And so immigration was

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<v Speaker 1>really the driving force that drove the British out of

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<v Speaker 1>the EU. The European Union and the European Central Bank. Yeah,

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<v Speaker 1>they don't always seem to see either eye do they Well,

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<v Speaker 1>you see, the European Central Bank is part of the

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<v Speaker 1>European Union, it's one of the institutions. But the Eurozone.

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<v Speaker 1>I always compare the Eurozone to somebody buying a secondhand car,

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<v Speaker 1>because if you look at the countries, there are different

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<v Speaker 1>philosophies on money, there are different philosophies on budget, economic thinking,

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<v Speaker 1>budgetary thinking. So it is not an optimal current his zone.

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<v Speaker 1>And if the secondhand card starts leaking, something is not

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<v Speaker 1>working and you have to muddle through and trying to

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<v Speaker 1>repair here fixed there another problem comes up, and that

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<v Speaker 1>is basically the euro Zone. Unfortunately, I have to say

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<v Speaker 1>we should have started initially with a smaller group, more coherent,

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<v Speaker 1>and then other countries could have joined when ready. We

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<v Speaker 1>didn't do that. We started with all of us, everybody

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<v Speaker 1>wanted to join, and now we have this problem. Do

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<v Speaker 1>you foresee that Mario dragged his policy of bond buying

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<v Speaker 1>and stimulus. Will it actually work? Um? Not really? In

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<v Speaker 1>European Parliament, I was member of the Economic and Monetary

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<v Speaker 1>Committee asked him very often, you know this q E

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<v Speaker 1>is now going to work because you're going to do it.

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<v Speaker 1>You're not going to taper anytime soon. I understand what

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<v Speaker 1>he tries to do is to keep the Euro as

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<v Speaker 1>a currency on his feet with a zero interest rate

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<v Speaker 1>and with q E. That is the thing he can

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<v Speaker 1>do because if not, if that would be a high

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<v Speaker 1>interest rate and there would be not enough liquid means

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<v Speaker 1>on the market, then basically many banks would get into trouble,

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<v Speaker 1>and uh in institutions as well. And I always compare

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<v Speaker 1>the Eurozone also to if if the United States you

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<v Speaker 1>have a dollar and you would have a monetary union

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<v Speaker 1>with Canada, that would work. But if you then ask

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<v Speaker 1>ask Mexico to join, would already be difficult. If you

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<v Speaker 1>then ask Venezuela to join, I can assure you will

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<v Speaker 1>be disaster. Thank you very much for coming in and

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<v Speaker 1>spending time with us. Dirk jan Epink, journalist, Senior Fellow

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<v Speaker 1>London Center for Policy Research and the author of Empire

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<v Speaker 1>of Little Kings inside the European Parliament. This is Bloomberg.

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