Wolfgang Munchau talks on the Eurozone and the
current financial crisis
The Director of EuroIntelligence and Associate Editor of
the Financial Times gives a talk to staff and students on
the development of the current crisis in Europe
On 17 February 2009 iCES Distinguished Visiting Fellow at the
European Business School London, Mr Wolfgang Munchau delivered an
iCES and Student Union Lecture on Europe, the Eurozone
and the global economic crisis.
Professor Scriven
introduced the speaker on behalf of iCES commenting on the
strategic importance of Munchau's work on EuroIntelligence as one of
the foremost essential online resources on European financial
matters.
During the event, Professor Scriven presented Mr Munchau with
the iCES Distinguished Visiting Fellow certificate Award which
recognises outstanding achievements in the spheres of business and
finance.
A crisis of global finance
In his talk, delivered to an audience of over 80 staff and
students, Mr Munchau examined German, French and other European
perspectives on the crisis, in particular the relationship
between the crisis and the allocation of markets in Europe.
Understanding Global Trade
Mr Munchau argued that the crisis is clearly a crisis of global
finance, and that, more specifically, it is a crisis of global
trade. He 
argued that the
collapse in global trade is what is not fully understood in
current analysis of how the Eurozone will be affected by the
financial crisis.
Comparing the industrial production in Europe and the latest
IMF forecasts of global growth, Munchau argued that the
tensions within Europe need to be examined in the light
of the divergence in the types of competitiveness among
European economies.
Mr Munchau speculated on the possibility of an
unlikely break up of the Eurozone suggesting that it is not
the case that the departure of either a weak or strong member will
be a defining factor of the break up. However, he argued, a
possible scenario may include a combination of external and
internal 'shocks' that would see an 'unbearable rise in
protectionism invalidating the rationale for EMU'. This, he
suggested, could be tackled by the member states reassessing fiscal
union.
Reducing the European dependency on exports
In his conclusion, Mr Munchau pointed out the way in which the
crisis had been underestimated so far affecting, in
particular, European nations that based their finances on
trade exports. During a focussed Q & A session Mr Munchau
further concluded that the crisis will continue with the
possibility of stabilisation within a year. However, for Europe,
such a stabilisation would have to be based on a decrease of
the financial sector, an increase in economic co-ordination, a
reduction of dependency on exports, and a reassessment of
trade.
The President of the Student union concluded the event by
giving a vote of thanks to Mr Munchau, emphasising that the event
had given students a deeper and more contextualised understanding
of the impact of the crisis for Europe and for globalised
relationships between European nations. The lecture was followed by
a wine reception where students had the chance to speak directly
with Mr Munchau.
Mr Wolfgang Munchau, newly appointed iCES Distinguished
Visiting Fellow talks to Regent's College Students
-
Tuesday 17th of February 2009
Institute of Contemporary European Studies (iCES)
European Business School London
Page last updated 11/10/2009