0:00:07.690,0:00:12.950
When Gandhi was asked once[br]to comment on European civilization,

0:00:12.950,0:00:17.247
his quip was,[br]"It would be a very good idea."

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When asked today about[br]our views on the European Union,

0:00:20.520,0:00:23.840
I think we can be excused[br]to reply in a similar fashion.

0:00:23.840,0:00:27.720
What a splendid idea it would be [br]if we could only pull it off.

0:00:27.720,0:00:30.000
United only in name,

0:00:30.000,0:00:33.000
the European Union is, I'm afraid,

0:00:33.000,0:00:36.410
in a process of disintegration[br]as we speak.

0:00:36.410,0:00:41.530
With the commitment and determination[br]of a termite colony,

0:00:41.530,0:00:43.630
which is eating into the foundations,

0:00:43.630,0:00:46.370
very soon there will be nothing left[br]but an empty shell,

0:00:46.370,0:00:51.744
to remind us of the lofty ideal, [br]that used to be the European Union.

0:00:53.410,0:00:56.000
In Agatha Christie novels

0:00:56.000,0:01:01.922
when the reader comes across[br]in the prologue a group of characters,

0:01:03.120,0:01:07.000
upper class characters usually [br]that are congregating some chateau,

0:01:07.000,0:01:10.000
the reader knows what to expect,[br]a series of murders.

0:01:10.000,0:01:14.000
Similarly, today when we hear that our[br]European politicians are gathering today

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or together we know what to expect, [br]a comedy of errors

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which will be wrapped up[br]in triumphant rhetoric,

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but which very soon will prove[br]to be nothing more

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than dangerous harmful waffle.

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To err is human.

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But to mess up spectacularly

0:01:36.940,0:01:39.060
we need an elite [br]made up of prime ministers,

0:01:39.060,0:01:44.000
presidents, ministers, [br]apparatchiks, opinion makers

0:01:44.000,0:01:48.000
who are determined not to face up

0:01:48.000,0:01:50.720
to a systemic crisis systematically.

0:01:50.720,0:01:55.450
Alas, at least now we have enough evidence

0:01:55.450,0:02:00.390
that renders all such denial inexcusable.

0:02:00.390,0:02:03.230
Humanity has not surprised itself[br]very often

0:02:03.230,0:02:05.000
but it has done so twice in the past.

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Οnce in 1929 and yet again[br]more recently in 2008.

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1929 ought to have taught us[br]a very simple binary twin lesson.

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First that the first victim of such [br]a crisis is the common currency.

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It was the gold standard in 1929, [br]it is the Euro today.

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The second victim[br]is of course truth and civility.

0:02:32.300,0:02:36.480
One such terrible crisis hits the world.

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A Hobbesian war of all against all[br]is unleashed on an unsuspecting humanity

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and the first victim is our capacity [br]to recognize the systemic crisis

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we are in, as a systemic crisis.

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And therefore it renders us incapable[br]of accepting our responsibility

0:02:54.950,0:02:59.070
for at least a portion of that crisis.

0:03:00.450,0:03:06.215
Thrillers begin with [br]some cunning detective who is unmasking

0:03:07.260,0:03:11.360
one shady character after the other.

0:03:11.360,0:03:13.956
But good thrillers, [br]I submit to you,

0:03:13.956,0:03:17.322
do not end with [br]the unveiling of the perpetrator.

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Τhey go one step further.

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Τhey reach the momentus moment

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when the cunning detective[br]inadvertently unmasks himself.

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Bewildered he is staring [br]at his own image in the mirror.

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This crisis is having[br]a similar effect on all of us.

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Our masks are falling.

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Unscrupulous bankers, inane politicians,

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conniving entrepreneurs,[br]cynical academics,

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uncritical citizens,[br]who are all being unmasked

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but as their masks keep falling[br]the dejection is becoming generalized.

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Meanwhile the human costs [br]are mounting up

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and the only way of making sense of them

0:04:06.130,0:04:11.130
and measuring them sensibly [br]is by means of counting lost generations.

0:04:11.460,0:04:17.688
It is time to transform Europe [br]and to be transformed in the process.

0:04:18.740,0:04:23.000
Now, the medical profession[br]only very recently

0:04:23.000,0:04:26.721
managed to save[br]more people than it killed.

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Up until the 1920s or so [br]the disease was preferable to the cure.

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Similarly with the Εuro crisis now

0:04:36.530,0:04:39.350
our European leaders are enacting,

0:04:39.360,0:04:42.906
what I call a poisonous medicine.

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Toxic bailouts, inane austerity.

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We created, in order to salvage[br]a Εuro system, a currency union

0:04:50.340,0:04:54.000
which was never meant,[br]never designed to sustain

0:04:54.000,0:04:56.000
the catastrophe of 2008,

0:04:56.000,0:04:58.830
the shockwaves of that great earthquake.

0:04:58.830,0:05:01.000
What we have done is we created a scaffold

0:05:01.000,0:05:04.790
which is, instead of helping[br]the edifice from collapsing

0:05:04.790,0:05:06.750
it is putting more pressure on it.

0:05:06.750,0:05:09.730
We've created [br]this European Financial Stability

0:05:09.730,0:05:11.960
or Instability Facility

0:05:11.960,0:05:13.210
and we modeled it.

0:05:13.210,0:05:17.880
We created it in the image [br]of Lehman Brothers' infamous derivatives.

0:05:17.910,0:05:19.513
It was as if we took two stones

0:05:19.513,0:05:21.826
and we tied them together[br]by means of a string,

0:05:21.826,0:05:25.000
hoping they will float more readily.

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The result of course[br]is the uncontrolled disintegration

0:05:27.900,0:05:30.320
that we are experiencing.

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Now, by now most people[br]are realizing this.

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So what we have here is[br]a new Jerusalem that is being canvased.

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It comes in the form [br]of the so called "Federal Option."

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Well-meaning Europeans [br]and some friends from federal field

0:05:47.380,0:05:52.788
recite this litany of federal concepts,[br]ideas, suggestions.

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I'll just give you some.

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We hear of the importance of forging[br]a Fiscal or a Transfer Union in Europe,

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of having a Federal Treasury,

0:06:02.480,0:06:08.000
of giving a new Leviathan, [br]a new Economic Czar

0:06:08.000,0:06:13.262
the power to rule over all of us [br]with an armed fist and keep us in awe.

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What we hear about is Centralized[br]Disposal of National Assets,

0:06:17.790,0:06:20.550
particularly of the Greek kind.

0:06:20.550,0:06:22.440
The laws of National Sovereignty

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as a price we have [br]to pay for this Fiscal Union

0:06:24.960,0:06:27.320
and of course the dreaded treaty changes

0:06:27.320,0:06:32.554
that have to go through [br]27 parliaments and/or electorates.

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I submit to you that this is both[br]unworkable and undesirable.

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Why is it unworkable?

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Because[br]- and this is a message to federalists -

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the worst enemy of federalism[br]at the moment is itself.

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And the reason why[br]I'm saying this is because

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if we move in the federals' direction

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the crisis is certain to outpace us.

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It would run faster than we do.

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And when the treaty changes take longer[br]than the collapse of the Euro,

0:07:02.000,0:07:06.000
all we will be left with [br]is the smouldering mess

0:07:06.000,0:07:09.420
in which there will be[br]nothing left to federate.

0:07:09.420,0:07:15.469
But there is a second reason [br]why this Federal Option needs to be shunt

0:07:15.900,0:07:20.790
and it is that if the United States[br]of Europe is a good idea,

0:07:20.790,0:07:26.770
it is not an idea that should be[br]wasted and subsumed

0:07:26.770,0:07:31.533
in the context of trying[br]to solve the current crisis.

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Let me put it very simply.[br]The Federal Option will only be possible

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once the crisis is over, [br]not as an antidote to the crisis.

0:07:38.790,0:07:42.650
We will only be capable [br]and worthy of federation,

0:07:42.650,0:07:45.360
when as European we can imagine the future

0:07:45.360,0:07:47.620
in which Greeks and Germans

0:07:47.620,0:07:51.810
will be voting in Greek and German[br]politicians to represent us.

0:07:51.810,0:07:56.920
We will only be able to affect [br]a decent Federal Europe

0:07:56.920,0:08:01.660
when we can imagine a situation [br]where our national armies

0:08:01.660,0:08:06.000
are dissolved and are merged[br]into a common European Defense force.

0:08:06.000,0:08:10.280
We are only going to be able [br]to put together a decent Federation

0:08:10.280,0:08:15.650
if we can imagine a situation[br]where our views are assessed

0:08:15.650,0:08:19.490
within Europe on the basis[br]of their merits and the merits alone,

0:08:19.490,0:08:23.000
what the ancient Athenians[br]used to refer as "Isigoria."

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As opposed to judging what somebody says

0:08:25.666,0:08:28.492
on the basis of the who they are,[br]what accent they speak in

0:08:28.492,0:08:30.490
which country they come from,

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and finally at a symbolic, [br]but a very important level,

0:08:34.330,0:08:39.320
let me say this, we are only going [br]to be capable of a proper federation

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when we can decide as Europeans[br]what to print on our euro notes.

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Instead of these abstract bridges[br]and gates that symbolize one thing,

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our incapacity to agree on common symbols.

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So if I'm right that the new Jerusalem[br]is not really a new Jerusalem,

0:08:59.000,0:09:04.750
and that it is putting forward [br]an unworkable and undesirable idea,

0:09:04.750,0:09:09.000
which will also lead [br]to uncontrolled disintegration,

0:09:09.000,0:09:11.360
then what is the alternative?

0:09:11.360,0:09:14.520
Well, let me suggest to you[br]that before we agree in an alternative,

0:09:14.520,0:09:17.000
perhaps we should agree[br]on some shared principles

0:09:17.000,0:09:19.820
that should govern our future.

0:09:19.820,0:09:24.867
Τhese future principles [br]may seem contradictory

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but they can be rendered harmoniously

0:09:28.000,0:09:30.000
and if they can't then we have no future.

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Let me give you examples.

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One principle is that I think we should[br]end the perfectly partitioned Europe

0:09:36.230,0:09:39.750
that we created in Maastricht[br]in order to create the Euro,

0:09:39.750,0:09:43.770
while at the same time however, [br]strengthening National Sovereignty

0:09:43.770,0:09:48.290
and empowering National Responsibility[br]within that model.

0:09:48.310,0:09:50.490
Another set.

0:09:50.490,0:09:52.030
End the pseudo solidarity

0:09:52.030,0:09:54.440
which is being imposed upon[br]the Dutch and the Germans

0:09:54.440,0:09:59.110
in order to give bailouts, pretend[br]bailouts to the Greeks and to the Irish.

0:09:59.110,0:10:03.380
Stop inane austerity which is only[br]making the debt crisis worse.

0:10:03.380,0:10:09.020
Ignore all the calls for debt buybacks[br]which will not work,

0:10:09.020,0:10:14.000
but at the same time integrate investment[br]and management of our problems

0:10:14.000,0:10:18.000
like existing debt and banking losses.

0:10:18.000,0:10:20.913
This is what I refer to[br]as decentralized europeanization

0:10:20.913,0:10:23.056
so allow me an acronym.

0:10:23.056,0:10:25.000
Decent Europe.

0:10:25.000,0:10:26.470
Europeanize what?

0:10:26.470,0:10:28.480
Free realms.

0:10:28.480,0:10:32.000
We need a management [br]of existing debt at a European level.

0:10:32.000,0:10:34.000
We need management of the banking sector

0:10:34.000,0:10:36.340
which is collapsing all over us,

0:10:36.340,0:10:42.000
and we need a europeanized[br]investment policy in aggregate.

0:10:42.000,0:10:44.990
How do we do this[br]without treaty changes and federation?

0:10:44.990,0:10:47.890
We already have existing[br]institutions in Europe

0:10:47.890,0:10:50.810
and each one of them[br]can be assigned one of these tasks.

0:10:50.810,0:10:52.710
I'm not going to go into this.

0:10:52.710,0:10:54.440
This is not the place or the time.

0:10:54.440,0:10:58.000
You can see more [br]of this proposal elsewhere.

0:10:58.000,0:11:00.620
All I want to do now[br]is to give you a flavor

0:11:00.620,0:11:03.610
of what the whole purpose of this is.

0:11:03.610,0:11:06.460
Decentralized europeanization[br]creates circumstances

0:11:06.460,0:11:08.900
for national sovereignty[br]and national responsibility

0:11:08.900,0:11:09.970
to be strengthened.

0:11:09.970,0:11:14.233
Because if we integrate[br]these three spheres in Europe

0:11:14.233,0:11:17.916
of existing debt, of banks [br]and investment flows,

0:11:17.916,0:11:19.730
then at the national level

0:11:19.730,0:11:22.820
each member state [br]can run a balanced budget,

0:11:22.820,0:11:25.180
and can learn to live within its means,

0:11:25.180,0:11:29.000
and also to be empowered[br]within these limits

0:11:29.000,0:11:33.000
to exercise a full national sovereignty.

0:11:33.000,0:11:36.330
So I present[br]this Decent Europe proposal to you

0:11:36.330,0:11:40.360
as if you want a forger [br]of a future Federation's prerequisite,

0:11:40.360,0:11:44.288
which I already mentioned[br]and I won't mention again.

0:11:45.810,0:11:48.300
Let me finish by reminding you of a myth,

0:11:48.300,0:11:50.810
according which Sibyl of Cumae

0:11:50.810,0:11:54.840
offered Tarquinius Superbus,[br]the king of Rome at the time,

0:11:54.840,0:11:59.000
the nine books of wisdom at a price that[br]Tarquinius considered to be exorbitant

0:11:59.000,0:12:01.320
and therefore he said no to the offer.

0:12:01.320,0:12:06.000
Sibyl as you all know started burning [br]one of these volumes after the other

0:12:06.000,0:12:10.000
until Tarquinius relented agreeing[br]to pay the original high price

0:12:10.000,0:12:13.000
for the remaining three volumes.

0:12:13.000,0:12:17.470
Let me suggest that the European crisis[br]is following Sibyl's strategy.

0:12:17.470,0:12:21.000
The problem is that our European leaders[br]keep saying no

0:12:21.000,0:12:23.460
and therefore threatening

0:12:23.460,0:12:29.250
to allow our common heritage[br]to burn in its entirety.

0:12:29.880,0:12:35.350
Decentralized europeanization[br]offers Europe a chance

0:12:35.770,0:12:39.260
to save its last three books [br]of wisdom or the equivalent.

0:12:39.260,0:12:43.240
It offers us a chance [br]to usher in a new era

0:12:43.240,0:12:47.000
in which Europeans, [br]Northern and Southern,

0:12:47.000,0:12:51.270
Western and Eastern,[br]can stare into each others eyes

0:12:51.270,0:12:54.350
and see and recognize a partner.

0:12:54.350,0:12:56.620
If we miss this chance,

0:12:56.620,0:12:59.310
then Europe is going [br]to be dragging the whole planet

0:12:59.310,0:13:03.080
into a despicable mire[br]for a third time in a century.

0:13:03.460,0:13:08.780
It is our duty and over overarching [br]obligation to prevent this.

0:13:09.000,0:13:10.670
Thank you.

0:13:10.790,0:13:13.825
(Applause)