The European conundrum (as I experienced it in a TV debate last night)

Permit me dear reader to say nothing about the farce unfolding in Athens presently, except perhaps to comment that when an economy unravels its political regime follows. Today’s post concerns a TV debate in which I participated yesterday. It was hosted by the French global channel France24 and featured two French economists, myself and a colleague from Germany. I suggest you watch it for one reason alone: It captures nicely Europe’s conundrum. On the one hand, there is an anxiety to make Europe work by diagnosing its condition correctly and putting in place new institutions that will not only offer palliatives but, more importantly, also undo the underlying causes of the crisis. On the other side we have a Protestant pastor-like figure talking about guilt, punishment and the fires of hell that must consume the damned. A frustrating but, at once, enlightening experience. Any comments? Click here to watch Part A and here to watch Part B.