February 2012

Lessons in Crisis Management: Making the European Stability Mechanism

Alessandro Leipold, chief economist of the Lisbon Council and former acting director of the European Department of the IMF, presents a seven-point programme for making the European Stability Mechanism a success. Drawing on his decades of experience in international finance, he argues that Europe’s leaders must move decisively to shore up the ESM’s available capital to a credible critical mass, ensure predictable and readily deployable instruments and devise a governance structure able to respond swiftly to fast-moving crisis situations. The policy brief was formally launched in late February at The Europe 2020 Summit in Brussels, which was keynoted by José Manuel Barroso, president of the European Commission.