The World’s “Big Economic Headache”

Tim Roemer, former six-term U.S. representative for Indiana’s 3rd congressional district, most recently served as U.S. ambassador to India. He sends this dispatch from the World Economic Forum in Davos, Switzerland.

One of the keynote speakers, Dr. Angela Merkel, spoke to the attendees at Davos with a message sprinkled with stark realism regarding the difficult challenges facing Europeans yet encouraging them to reach for “new methods” to build for a more prosperous future. She asked Europe to learn lessons from the current crisis and help define what their role will be in shaping the future of the world. While Europe currently comprises about 7 percent of the world’s population and 20 percent of the GDP, it is probably perceived as the ” big economic headache” for the world economy right now, she lamented to the crowd. She reminded Europe they should concentrate on three goals:

1. fixing the budget, 
2. improving competitiveness and jobs, and 
3. striving for solidarity.

She challenged them to be “creative and ambitious” and not simply settle for Europe to be a destination for traveler’s “to take a vacation.” The key question for her and Europe, as they strive to make it through this crisis of severe pain and austerity, will be what Churchill-like message on reformed capitalism, democracy and freedom unifies them to actually reshape the world? Unity and solidarity require blood, sweat, toil and tears, and a clear vision for the rewards for this sacrifice.