President Putin about economic problems

In order to ensure higher economic growth rates, it is necessary to conduct structural changes, to eradicate economic bureaucracy, and to improve tax legislation. This was disclosed by Vladimir Putin in his interview with the Chinese newspaper Renmin Ribao.

"Under the circumstances of the market economy, it is also necessary to eliminate an unreasonable interference of the government in the market /not all interference, but only unreasonable/, to improve judiciary system, and the system of adoption and fulfilment of orders," the President said.

The Russian President noted, that over the last two and a half years Russia had a satisfactory pace in the growth of the economy - 5-6%. At the same time Putin admitted that a higher increase "would have been more preferable." The President marked, that not only Russian GDP keeps growing in Russia, but also golden-forex reserves of the Central Bank of Russia. "At the present moment the reserves are increasing weekly by $500-600mln," Putin said.

At the same time the Russian President noted that there are some "economic growth limitations, which must be taken into account." According to him, these limitations are the State's social obligations to people.

"In my opinion, it will be unwise, if we conduct a policy, which would undermine people's trust in our actions that we are planing and carrying out," the President said. "Therefore, we are trying to pursue a balanced policy, so that all measures, which we are planning in the economy, will improve the population's living standards, which is the main target of our reform," Vladimir Putin outlined.

According to him, the main criterion of success of the current reform in Russia is public stability, which "can be based only on the principles of a dialogue, trust and cooperation within society, as well as between society and the government." The President also pointed out, that the relations between the executive and legislative branches had become constructive, and that made it possible to launch pension and labour reforms.

Speaking about the potential threats to the social stability, Vladimir Putin stressed, that the government "contradicts any manifestations of extremism prompted by ethnic and religious confrontations." According to the Russian President, "the government actions in this direction are concentrated upon the work on the relevant laws, aimed at protecting human rights and tight cooperation between all bodies and levels of the government."