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INSEAD Professors offer summaries of the conference






Acting Dean of INSEAD Peter Zemsky
It is really dangerous when businesses disengage. You can see what happened in Greece on this front and this could be a harbinger of what can happen to the rest of Europe if we're not careful.

Deputy Dean of Faculty & Research Ilian Mihov - 
What Europe can do to find its own niche is to remove barriers so that people can create new businesses. It doesn't matter that Europe is smaller than China or India. Switzerland is a small country and it's successful. We are now in the same situation as the 1970s - and you cannot create growth by printing money to put into the economy; you only create inflation.

Deputy Dean for Executive Programs Miklos Savary - 
What can you do to change the situation in Europe today? There are roadblocks to be overcome. Dialogue and collaboration are the key here and the potential for human beings to collaborate will help overcome roadblocks. Social networks are catching on in this regard globally and helping create collaboration through dialogue. This kind of collaboration is helping to create innovation, too. Research shows most of it appears to be in the US, the Far East...but not much in Europe and that's a little scary. We're using social networks - but not for innovation.

Q&A
Zemsky comments on a question from audience on austerity vs growth..."Germany is still traumatized by inflation....We should keep in mind the (post World War One) Treaty of Versailles and the effect austerity had on Germany at that time." 

Question: How can public opinion be reflected in European governance and government?

Answer: It's difficult to bring public opinion into a global vision or strategy - individual leaders don't have the right to decide globally and it is easy to say "blame Brussels." It is by very small steps, but the only way to get people to trust again in the future is to get people to believe and talk about competitiveness: this is the way to use the best in Europe, and the best in Europe is its people. They have to be part of a new strategic vision.

Question: Will we be able to get on the road to competitiveness without continuing the single market and despite the differences within Europe? What is wrong with a federal system?  The US has differences between Massachusetts and Mississippi and it still has a unified economy.

Answer: The US was built from nothing - what was Mississippi like in the 19th century? It is easy to build from a new landscape. This is not the case in Europe. There is a psychological dimension to this challenge, and we are not all focused on a single European state.  I think the main priority is not to say "federalism or nothing," but that we find efficient public policies working with 5, 10, 11 countries rather than to stop until we have a federal system. We have to launch and implement some public policies before this.