Guy Verhofstadt: The Financial Crisis - Three Ways Out for Europe

Essay by Guy Verhofstadt, Former Belgian Prime Minister

Guy Verhofstadt, Former Belgian Prime Minister, at the Brussels Forum.

This would allow for worldwide oversight of the financial markets based on uniform rules and standards. Fundamentally, however, the focus should be less on emergency aid and more on the structural reforms necessary for the EU and the entire world to achieve a new and binding international framework for economic and financial policy.

In concrete terms, Europe needs an institution to monitor credit inquiries between banks. This, according to Mr. Verhofstadt, would be preferable to government guarantees as a way of reestablishing confidence and ensuring necessary liquidity. In addition, it is important to create an economic government for the Eurozone, which should develop criteria and standards to bring the individual member states together to form a better integrated and more competitive economic region.

In his essay (see download, right column) he places the current financial upheaval in its historical context and outlines the far-reaching geopolitical consequences of this crisis, which he regards as the greatest challenge that has ever faced the European continent's political community.