Events | 2010.02.12
Europe's indebted countries look to financial PR firms for help
Being described as a pig is rarely a compliment, so little wonder the group of indebted countries now being grouped together as the "pigs" – Portugal, Italy or Ireland, Greece and Spain – are concerned about their reputations.
Portugal\'s economy minister, Manuel Pinho, has made his distaste clear. "I am deeply offended that anyone would label my country with this term," he said.
Some of the nations under the banner are now thought to be close to hiring public relations advisers to try to polish their tarnished images. They want to convince the media and rival governments, not to mention the market speculators taking big bets against them, that their financial predicament is not as bad as might be feared.
In markets susceptible to rumours, having a clear line of communication is important. "My sense is they should take some advice to protect themselves … any rumour has an impact," one adviser said.
"On issues like Greece or Dubai, market sentiment is driving public policy. Going into the capital markets to explain yourself is the only way to reverse that," another said. If they do take the plunge and engage PR specialists in London – where many financial reporters and hedge funds that can influence markets are based – they would not be alone.
Iceland hired the public relations advisers Financial Dynamics during the height of the banking crisis that eventually drove the country into bankruptcy. The finance department of Dubai – the "d" in "stupid", as another mischievous acronym doing the rounds has it – is represented by the London-based firm Brunswick. Of the other "stupids" – Spain, Turkey, the UK, Portugal and Italy – London apparently
doesn\'t need any help. "They are so good at spinning away," said one adviser.
Countries do not need to be in crisis to take advice. Russia called in PR advisers four years ago when it held the presidency of the G8 for the first time in an effort to get its message across as clearly as possible. For a country not accustomed to transparency, it was also an attempt to demonstrate that there was nothing to hide. GPlus and the US company Ketchum were handed the task of ensuring Russia\'s presidency was perceived to have gone well.
Advisers often push government ministers on to the front foot with a clear and confident message. "Iceland is one of the best examples I have seen, where government ministers have been vocal in the international media to explain the measures they are taking," one adviser said.
One of the problems is that governments can become bound up in their own domestic problems and find it hard to navigate the financial community. They do not realise that a story needs to be told to the international investors who need to be supportive. "It is important to get the client to lift their eyes from domestic squabbles and explain the bigger picture," the same adviser said.
Ironically, the international media has recently been more supportive of Iceland\'s plight than the domestic media, which continues to lambast the authorities for the need to pay out UK depositors in the Icelandic banks.
If the indebted "pigs" do embark upon a PR assault, one of the first messages is likely to be that they are misunderstood – just like the animals themselves, with their reputation for dirtiness and wallowing around in mud. If they could speak, pigs would no doubt argue they are actually clean, odourless and intelligent.
For more information, please visit
http://www.guardian.co.uk/global/2010/fe[...]-look-to-financial-pr-for-help
