World Economic Forum Annual Meeting 2009

  • The Economic Governance of Europe

    Thursday 29th January 2009 - 3:45pm - 4:45pm

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  • The Economic Governance of Europe

    José Manuel Barroso

    Fredrik Reinfeldt

    Giulio Tremonti


    Jean-Claude Trichet


    Chaired by •

    Josef Ackermann 


    Thursday 29 January
    15.45-16.45

    Josef Ackermann

    , Chairman of the Management Board and the Group Executive Committee, Deutsche Bank, highlighted the key role Europe is playing in resolving the current financial turmoil and in shaping a new economic order. He acknowledged that the crisis has affected the balance between the state and the market, and called for a “coordinated approach”.

    José Manuel Barroso

    , President, European Commission, echoed the need for unity in the face of crisis. “We are all in the same boat,” he declared. ”Even the biggest member states cannot manage global problems such as the financial crisis and climate change in isolation.”

    Barroso suggested that, acting together, Europe represents the largest economy in the world. He called for “a new triumph for coordinated European actions.” European integration will not derail, he argued. “Present trends will increase, not decrease, the need for European integration.” Europe will need to help shape the new world order or risk losing relevance.

    On the near-term economic outlook,  

    Fredrik Reinfeldt

    , Prime Minister of Sweden, sees a deepening of the crisis over the coming year. Referring to the experience of previous crises, he cautioned policy-makers to consider the longer term impacts of the large fiscal stimulus packages. “We learned in the early 1990s that huge deficits can lead to future imbalances, and that lesson should be remembered.”

    For

    Jean-Claude Trichet

    , President, European Central Bank, the long-term objective should be to ensure resilience of the global financial system. “We need to solve immediate problems as well as follow a sustainable recovery path, and ensure long-term stability. To achieve this, he argued it is imperative to combat the insidious tendency towards short-termism.

    Giulio Tremonti

    , Minister of Economy and Finance of Italy, spoke of the need to focus on the “governance of the economy of Europe.” The financial system grew too fast and was too levered, he said, agreeing that in the aftermath of the crisis, the balance of power is shifting towards governments, and pointing to the continued importance of the European Union in resolving the crisis.

Speakers

  • Jean-Claude Trichet Jean-Claude Trichet
    Chairman, Brussels European and Global Economic Laboratory (BRUEGEL), Belgium

    Graduate: Ecole des Mines; University of Paris, Institut d'Etudes Politiques de Paris; Ecole Nationa...

  • José Manuel Barroso José Manuel Barroso
    President of the European Commission (2004-2014), Brussels

    José Manuel Durão Barroso (b.1956) was President of the European Commission (2004-2014), Prime Min...

  • Fredrik Reinfeldt Fredrik Reinfeldt
    Party Leader, Moderate Party of Sweden

    1990-91, Deputy Secretary to Stockholm City Commissioner; 1991, Secretary to Stockholm City Commissi...

  • Giulio Tremonti Giulio Tremonti
    Chairman, Aspen Institute Italia, Italy

    Since 1974, Professor, University of Pavia Law School; since 1994, Member, Chamber of Deputies; 1994...