【正文】 s fastchanging financial services sector. Ma, who has fed a reputation as one of China39。t make sense. At present, the mind of the French people is “Let39。s been the lesson from the global financial crisis. I think that39。s coalition anyway, and Merkel is now being roundly criticized for allowing financial events in Europe to skid nearly out of control. Others point out that delaying action may have made the bailout more costly to Germany and others than it would have been earlier, as borrowing costs climbed dramatically in reaction to swiftly mounting perceived risks. In the runup to the announcement about the European aid package, Wharton professors Mauro F. Guillen(born and educated in Spain) and Saikat Chaudhuri(born and educated in Germany), and Jean Salmona (born and educated in France), founder and chairman of the editorial board of ParisTech Review, participated in an interview on the likely outes from the financial crisis facing Greece, some of its sister countries and the European Moary Union more generally. How did events spin so out of control? How will the politics of the crisis affect the Eurozones economic performance? And will there be similar crises in the future? Guillen, Chaudhuri and Salmona addressed these and other questions as well as many longerterm issues relevant in the wake of bailout efforts on May 7, just before the huge financial support package was announced. Mauro Guillen: The background to all of this is, of course, a little bit more than 10 years ago when some European countries adopted the euro as their currency. But they didn39。t even know how much money there is in the country because their fiscal system it39。s why they are posting returns. So whether we like it or not, [the markets are connected] and the stock markets are certainly sending us those signals. That39。m expecting it to fluctuate within a small band. But behind house prices is a currency phenomenon with excess liquidity. To resolve the currency problem, you have to tighten liquidity by raising rates. But China is worried that if it raises rates, it will have a negative impact on the economic recovery and the government is trying to strike a balance between these two forces by making the best optimal choices. But I anticipate the rates will be slightly increased. This brings you to the topic of the appreciation of the renminbi, which is a major issue at this stage of the opening up and reform process in China. The choice we are now facing is whether to appreciate [the value of the renminbi against the dollar。s [earnings] results declared very recently, or IBM39。s why at the beginning I was saying you also have to take into consideration the political cost or the political benefits or both of doing things in a particular way. Greece, first of all, what it needs is to tell the truth. It hasn39。s financial system. Such an oute would have set off a new round of recession in Europe and might have dragged the world financial system back to the depths reached 12 to 18 months ago or worse. Some critics still view the overall stabilization package, which left many details vague, as a shortterm fix that ultimately will fail to address deep public and private debt levels, pressing fiscal deficits and persistent internal and external trade imbalances. One explanation for why Europe39。t let [the EU] fail. It39。t think it is very likely. It39。s because] the history of China39。s the center of attention now what we need to do is to try to resolve the situation there and then take it from Merchants Bank (CMB) opened its New York branch the first Chinese bank branch opening in the . after a decade on October 8, 2021, just as Lehman Brothers was in throes of collapsing and the global economic crisis began escalating. Having witnessed the crisis from the eye of the storm on Wall Street, and then the huge credit release in China last year, Ma Weihua, the bank39。t see how we can go ahead without more coordination some kind of mon policy. Having mon money without a mon fiscal policy doesn39。s time to create the right institutions and mechanisms for dealing with the kinds of financial crises seen in Europe last week. Will we see more crises? I think that in a global economic will see more crises. That39。t think about what should be done in case one or more countries actually get into trouble. They didn39。t want to single out Greece as being institutionally a disaster. But it seems to be that there are a lot of things in Greece that are not working if you try to impose [a solution] from outside it may not be that39。s no choice. The other point I want to make is that there is a shortterm consideration, a midterm consideration, and a longterm consideration, which has been implicit, right? Yes, Merkel party suffered a major defeat in regional elections last weekend], which will make it hard for her to govern from Berlin and Germany as a whole. But there are much larger implications here for the system. If it es down to it, that notwithstanding, her focus will be on saving the German economy by saving the EU. I think the point here is how can we achieve that integration in a meaningful way? It would be easy if all new entrants, if the weaker economies in Europe including the Eastern European ones, were also faltering at this stage to make the argument that the whole EU and the euro is a failed experiment. But it39。t know] how broke into the industry? You have to know all of this, and you have to build this day in and day out.. All we can do is rely on daily life to build that, especially now with the Inter, which is an incredible opportunity. If I’m not away on business, I go home at 11:30 pm every day my house is very close to the office and I read. Then I get on for an hour and check out both the mainstream news and the gossip. If