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Since 2010 Klaus Regling has headed the European Stability Mechanism (ESM), the eurozone organization established to assist member states in financial difficulty. The ESM has offered very substantial loans at very preferential terms to Greece, Portugal, Spain and Ireland, provided that they implement indispensable reforms. Four years later, all these countries - with the exception of Greece, whose situation remains difficult - have cleaned up their public finances and swung back to growth. This pragmatic and seasoned European civil servant readily admits that some errors were made, while at the same time ticking off the successes and what remains to be done. Mr. Regling is most definitely someone with deep front-line experience, given the diversity of jobs he has held at the IMF or with the German finance ministry, not to mention his many dealings with key stakeholders and financial markets, making his opinions essential. We are delighted that he chose our publication to share his views. Adapted from the source document.

Europe entered a deflationary spiral this summer, ruining its countries' hopes of implementing ordered debt reduction strategies. But the moment of truth is fast approaching. Europeans will soon be paying the bill for the errors their leaders committed at the creation of monetary union and the euro, based on a top-down ideological model which paid little heed to real constraints. Europe is undoubtedly facing a massive economic crisis or even a depression, coupled with higher taxes and a significant fall in the standard of living. The best one can hope for is that the main institutional achievement of the European project-the single market-will not bend to the political headwinds that are sure to blow, and that the ordeal will be as short as it will be violent, clearing the way to a rapid return to a healthier growth path. Adapted from the source document.

The Smoot Hawley Act of the American congress of 1930 immediately and globally started a chain of commercial reprisals from which the developed countries took almost 30 years to recover. Thus, the declarations of G20 leaders are without unanimous and conscience of the danger of neo-protectionism that might occur, as well as a willingness to do everything in its power to prevent this. Up till now, matters seem to go relatively well (except for Ecuador, increasing up to 900 customs duties). The threat remains however, even if its presentation will be in new and different forms, more insidious and less visible for the general public. Notably regarding direct state intervention in economic management through revival programs and a re-emergence of global protectionism. Adapted from the source document.