Crisis is Opportunity for Deeper, Faster Integration

"When you build a single currency, the natural step that follows should be a coordinated economic policy. Beyond monetary policy, Europeans must give themselves the means to manage economic policy," Strauss-Kahn told his audience.

The debate, titled "Twenty years of Transformation in Central and Eastern Europe: Fulfilling the European Promise," featured IMF Managing Director Dominique Strauss-Kahn, former Latvian President Vaira Vike-Freiberga, editor-in-chief of Gazeta Wyborcza Adam Michnik, and Jacques Rupnik, a historian. It will be broadcast by France 24 on April 6.

Current crisis represents opportunity for Europe

All four panelists pointed to the achievements of Europe since the single currency was introduced in 1999. But they also agreed the crisis has exposed weaknesses in the policy framework. Now is the time to address such weaknesses and to further strengthen economic governance in the eurozone, which includes the 16 members of the European Union that share Europe’s common currency, the euro.

The panelists were generally optimistic that Europe would emerge stronger from the current crisis. "There is no reason why the European Union would not be able to overcome this crisis, Strauss-Kahn said. "When I hear views from outside Europe, people say they are amazed at the incredible achievements of Europe, yet they are surprised that sometimes easy things cannot seem to be completed."

"European integration is the best idea Europe has had in 2000 years. We must do what it takes to pursue the purpose," Michnik said. Vike-Freiberga agreed. "Europeans have been complacent. Eurozone countries have been complacent. If we had followed up on the Lisbon strategy, we would be ahead of the game."

"The crisis shows when the weather is quiet, existing institutions work well enough," Strauss-Kahn added. "But when you have a storm, then weaknesses of this institution appear clearly. And better coordination and stronger coordination in economic policy in my view is absolutely needed."

Playing by the rules

Belonging to the European Union and the eurozone has brought tremendous benefits to member countries. But these advantages also come with commensurate responsibilities. Panelists offered their take on the lessons they draw from the crisis and how to devise credible mechanisms for economic coordination.

The crisis is the...