Europe in crisis: Hope vs despair

“If there is a need to do more – Europe, the euro area, the governments of the euro area – stand ready to do what is needed to make sure financial stability in the euro area is preserved. That commitment is very, very strong, and I think it is often underestimated.“ – Klaus Regling, the head of the EFSF

In an effort to help Europe out of the financial crisis it is currently facing, European leaders have been discussing a fiscal pact to centralise decision making and limit spending.

According to the agreement negotiated in Brussels, any country that spends more than three per cent of its gross national product will be prosecuted at the European Court of Justice.

Will this ensure the survival of the euro? Will there be further downgrades or will greater centralisation work?

At this time of increasing division, it has fallen upon the shoulders of Klaus Regling, the head of the European Financial Stability Facility (EFSF), the European bailout fund, to manage the short-term crisis.

“Mr Regling is in a desperate position, as [are] most people in Brussels, and he tries to overcome that despair by wishful thinking.“ – Marcus Kerber from the Technical University of Berlin

The fund, backed by guarantees from the European Union, has already bailed out Greece and is designed to help more nations pay their bills if they request assistance.

But opponents of the currency are raising their voices – Marcus Kerber, a long-standing opponent of the fund, says that the fund must – and will – be reigned in.

It is becoming increasingly apparent that the whole struggle and debate is not just about saving the euro – it is also increasingly about the very notions of European solidarity and unity.

On this episode of Talk to Al Jazeera, both men share their opposing views on Europe’s financial crisis.