OVERCOMING THE CRISIS

Summer 2009

by Loukas Tsoukalis

Europe wants to be a major player in the negotiations for a new global financial architecture. This will have to involve a stronger and reformed IMF with a substantial redistribution of power in its governance structure. We know that European countries are grossly over-represented at the IMF executive board, while intra-EU coordination leaves much to be desired.

The gains from a single representation of EU countries, or more realistically of the eurozone, are obvious: a clear message of European unity to the rest of the world, stronger collective influence of Europeans in international finance compatible with a re-weighting of votes in favour of the large emerging economies.

Apart from a few well-paid jobs and remaining illusions of national sovereignty and prestige, the losses are more difficult to identify for countries with a common currency. Are we Europeans ready to put our votes where our mouth is?

Further articles in this  OVERCOMING THE CRISIS section
Edmond Alphandéry	"It's up to Europe to set a global example of concertation"
Jerzy Buzek	"Let's return to the grassroots and base growth on savings and productivity"
Mark Eyskens	“My 10 point rulebook for the globalised economy”
Franz Fischler	“What we need first and foremost is a change in public consciousness”
Nicole Gnesotto	"We need a new global political deal now the West is no longer master of the world"
Béla Kádár	“To save the market economy and democracy, governance has to step in where corporations ruled and markets failed”
Noëlle Lenoir	"My five courses of action"
John Monks	“The financial markets are where the re-building must start”
Poul Nyrup Rasmussen	"The EU must pull its weight and demonstrate real leadership"
Klaus Regling	“Better regulation and supervision, and the greater legitimacy of international financial institutions”
Onno Ruding	“Implement de Larosière and then consider further reform”
André Sapir	"Restoring the health of banking is no longer a financial problem but a political one"
Tøger Seidenfaden	“We urgently need much stronger international institutions"
Constantine Simitis	“Fiscal stimuli, yes. But social goals are also crucial”
Loukas Tsoukalis	"To be a major player on the new global architecture, Europe must end its IMF over-representation"
Alvaro de Vasconcelos	"Now it's the West that needs the Rest"
George Vassiliou	"How to beat this crisis and head-off another"
Nicolas Véron	“Institutional innovation, not streamlining, is today’s priority”
Stephen Wall	“We need a eurozone regulatory structure, and if Britain wants a role it must manage its eurozone entry”
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