In a passionate debate in Strasbourg today on the measures needed to end the financial crisis in Europe, Guy Verhofstadt (Liberal group leader) underlined three key mistakes that have contributed to the present situation and four courses of action to resolve it.

"This is not just a Greek debt crisis but a crisis of governance across the whole eurozone. Greece is only the trigger," said Verhofstadt.

"Europe made a strategic mistake 12 years ago in not introducing a fiscal union to complement monetary union; a methodological mistake by relying purely on intergovernmental peer pressure and a tactical mistake in dithering for 18 months whilst sending a cacophony of mixed messages to the markets."

The Eurozone's future rests on four pillars of action in the coming months:
• A genuine system of economic governance led by the European Commission and meeting on a regular basis,
• a eurobond market that will bring discipline and stability,
• a growth and jobs Pact at EU level (similar to that introduced in the US) that will show us a way forward based on investment
• agreement on the six legislative measures for strengthening economic surveillance and stability including a commitment to sanction any country ignoring the warning signs of excessive deficit and debt."
 
"The European Commission must now reassert its right of initiative and come forward with a comprehensive global proposal that is based on these four building blocks and that addresses both the legal and institutional lacunae as well as the missing policy elements for a stable economic future in the eurozone."