Speech at the Bruegel Institute
Europe is at the most serious of crossroads. Usually, at times of crisis, it rises to the occasion and provides political answers to pressing problems. But today, the Eurozone looks broken and the question arises: is there the will to save it? And if there is the will, is there the way?
There is talk of a bond market that no longer functions, a banking sector with interbank lending virtually at a standstill, entire zones which are cut-off from credit, a run by global investors and an alleged, quiet bank run by citizens. Credit is on the verge of disappearing altogether, confidence is low and decreasing, and governments are forced to adopt austerity measures which, in turn, fuel all the above, increase social tensions and strengthen opposition forces based on populism and opposition to rationalization of finances.