The global recession is forcing Europe to re-evaluate the co-ordination of economic policy. Surviving the present crisis, ensuring the sustainability of European countries’ public finances and maintaining the continent’s competitiveness will compel us to co-operate more deeply than ever before.

According to conservative estimates, the total public sector deficit in relation to gross domestic product will grow in Europe this year and next by about 5 percentage points. Public debt as a share of GDP will rise to around 80 per cent, and in many countries well beyond that.