Finance Minister says banking system is 'healthy'
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1. Wide shot French finance minister, Christine Lagarde working at her desk
2. Mid shot Lagarde working at her desk
3. SOUNDBITE: (English) Christine Lagarde, French finance minister:
"I think the subprime issue and the way it has spread around the globe so quickly is a clear indication that globalisation is not something that we can either deny or challenge. But certainly is something that you have to cope with and for which you have to be prepared."
4. Lagarde at desk signing documents
5. Tilt down from reflection of Lagarde on ceiling to Lagarde seated
6. SOUNDBITE: (English) Christine Lagarde, French finance minister:
"In terms of the impact on the real economy (of the subprime crisis), clearly what affects the US economy has an impact in Europe simply because we have very strong relationship, be it in trade, in finance or otherwise. So to the extent that my colleague Mr Paulson (US Treasury Secretary Henry Paulson) anticipates, there might be an effect on the US economy, which he has indicated recently. We are indeed extremely receptive to his forecast and his anticipation with a view to possibly assessing what effects it will have on the European and as a result the French economy."
7. Tilt up documents being signed by Lagarde
8. SOUNDBITE: (English) Christine Lagarde, French finance minister:
"The ECB (European Central Bank) is a European creature. And it is very independent, and independent by birth if I may say. And certainly its independence is respected. But it doesn't stop governments from raising their voice about the needs of their economy and the needs of its people. So I don't find it offensive if governments express their views."
9. Tilt down Lagarde to pile of dossiers
10. SOUNDBITE: (English) Christine Lagarde, French finance minister:
"On EADS, (European Aeronautic Defence & Space Co.) now that the management is well settled, is in place -as Louis Gallois has indicated today I think- they should just get on with the work and we should let them produce the work that they are expected to do as sensible managers of a very, very reputable, very successful European company."
11. Two shots of Lagarde at desk going through dossiers
The global market disruptions caused by the subprime loans crisis in the US was something for which France had better prepare for, French Finance Minister Christine Lagarde said on Monday.
"The subprime issue and the way it has spread around the globe so quickly is a clear indication that globalisation is not something that we can deny or challenge," she said in an exclusive interview with AP Television.
Global markets were spooked earlier this month when France's largest bank BNP Paribas announced that it was suspending three of its funds due to their exposure to US subprime mortgages.
Lagarde, who is keen to avoid any risk to France's fragile economic growth, had urged French banks on Friday, not to tighten credit over the market disruptions.
She told a Cabinet meeting recently that French banks had little exposure to the US crisis, which was prompted by mounting defaults on subprime loans, or those to people with risky credit histories.
However in the interview with AP Television she said that "in terms of the impact on the real economy (of the subprime crisis), clearly what affects the US economy has an impact in Europe simply because we have very strong relationship in trade, be it in finance or otherwise."
She also said that France would be "extremely receptive" to the forecasts offered by US Treasury Secretary, Henry Paulson, with regard to the impact of the subprime crisis on the US economy, "with a view to possibly assessing what affects it will have on the European and as a result the French economy."