CCTV Script 10/04/13
This is the script of CNBC's news report for China's CCTV on April 10, Wednesday.
Welcome to the CNBC Business Daily.
As U.S. Treasury Secretary Jack Lew wraps up his tour of Europe, he is calling on his European counterparts to strike a balance between growth and austerity.
[Sound on tape by: U.S. Treasury Secretary Jack Lew: Our view is that there needs to be a balanced approach between growth and fiscal consolidation that all tools have to be considered.]
Lew's message striking a chord with France which is grappling with slowing growth and high unemployment. But a cooler reception from Germany, which has the Euro Zone's biggest trade surplus and is a big proponent of austerity.
But clearly someone does disagree with Berlin's approach - billionaire investor George Soros.
[Sound on tape by George Soros Chairman, Soros Fund Management: Germany is imposing the wrong policies on the Eurozone. Austerity doesn't work. You cannot shrink the debt burden by shrinking the budget deficit.]
Soros, who was speaking in Frankfurt overnight, also said Germany's approach to the Cypriot banking crisis was misguided.
[Sound on tape by George Soros Chairman, Soros Fund Management: In the bailout of Cyprus, Germany went too far. What happened in Cyprus undermined the business model of European banks, which relies heavily on deposits.]
And as Cyprus gradually gets its books in order, warning bells are starting to go off in Slovenia.
In a report out on Tuesday, the OECD said that the Baltic state may have underestimated the cost of cleaning up its banks
It believes that Slovenia's public debt had more than doubled to 47% of GDP since 2008, warning that without reforms, that figure could rise to 100% by 2025.
Speaking to CNBC earlier, one analyst told CNBC that the situation in the former Soviet state could be worse than in Cyprus.
[Sound on tape by Sandra Navidi, Founder And Ceo At Beyondglobal: Slovenia is in quite a bit of trouble, there are some similarities to Cyprus, in that it's a small country with a large banking sector and high indebtedness.
However, there are also significant differences. It's not a tax haven, it's not an offshore banking location, but it is in a recession with a negative ratings outlook.
It's neighbors and trading partners aren't doing well, so it will try everything to escape a bailout but at this point it's not entirely clearly on whether a not it will succeed.]
And according to the OECD, local banks hold $9 billion in bad loans. So if Slovenia were to seek an EU bailout, Sandra believes that depositors could face the same fate as those in Cyprus.
[Sound on tape by Sandra Navidi, Founder And Ceo At Beyondglobal: Depositors cannot rely on being safe... If you give your money to the banks, that's not risk- free money, up to the insured amount. I think that mistake is going to be made again, that there would be a levy on uninsured deposits, so far I won't worry that much but other than that. Going forward Cyprus set a precedence that is not unlikely to be repeated again]
Li Sixuan, from CNBC's Asia headquarters.