After the crisis

The world faces considerable economic uncertainty. What will the future look like and what should be the correct government and market response to assure more favourable outcomes?

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Sir Stephen Wall and  Dr. Denis MacShane MP

Competitive future

“The current crisis has demonstrated how interconnected the global financial system has become and that no one will escape unscathed. The future will be very competitive. There is a flight to quality where relationship banking will become even more important. In the end we will see fewer but bigger and stronger financial institutions.”

David Marsh, Chairman, London & Oxford Capital Markets plc

American question

“The big question is how America will finance its still very large current account deficit. Extremely large US capital imports of $5 bn a day will fall. But if the capital markets decide that the deficit can be financed only at a much lower dollar, funds will flow into the Euro – exacerbating the currency’s over-valuation and Euro area internal current account imbalances.”

EU initiatives needed

“US policies can have a major influence on Europe. Foreign policy as well as finance require a permanent transatlantic dialogue. But there is no prospect that Europe could influence US policies in either field unless member states have common and coherent objectives.” Download speech

Sir Stephen Wall, UK Permanent Representative to the European Union (1995-2000)

Test for co-operation

"The European project has never had a period of calm. We take two steps forward and one back. The test now is not just whether governments can work together but whether they will continue to allow the European Commission to exercise its powers of initiative and its authority to enforce. That is the index of our survival and the test of our future success."