The way Busso von Alvensleben sees it, the European Union is learning a tough economic lesson.

German Consul General von Alvensleben spoke to approximately 50 people at Syracuse University on Wednesday, enlightening the audience on the causes of the current European crisis, Germany’s role and what the future holds for debit-stricken European countries.

The former ambassador to Sweden and Ireland and former Commissioner for Global Issues, specifically discussed the current decisions being made in Europe regarding the failing economies of multiple countries. The event took place at the E.S. Bird Library at 12:45 p.m.

Immediately, von Alvensleben rejected the presumptions that many Americans have about the European crisis and how it should be handled.

‘Running a country, specifically a union of 27 sovereign member states, is a great deal more complicated and demanding than managing a company, no matter how big that is,’ von Alvensleben said.

To explain the magnitude of the crisis, von Alvensleben first described the European Union, the government system for European countries.

The EU consists of 27 member states, and among them, 17 states have proceeded to a further degree of integration called the Eurozone, the area where Europe has progressed the farthest.

The euro, von Alvensleben said, has accomplished a lot since its establishment 13 years ago.

‘The euro is the only major currency area with its external accounts in balance, which is a stronger guarantee of long-term sovereignty,’ von Alvensleben said. He explained that the European deficit will be about 4.1 percent in 2011, less than half of the United Kingdom and the United States.

But von Alvensleben said he doesn’t want to ‘paint a rosy picture.’ He explained that the main reason Europe is in this crisis is because many countries lived beyond their means, but worse, some spent more than they could repay.

The Greek debt crisis, von Alvensleben said, created a considerable loss of confidence in the financial markets and the confidence in the Eurozone as a whole.

Germany is one of the few countries that have not faced the wrath of the crisis. It has reached a new competitive level, von Alvensleben said, because of the launch of the euro. The German economy found a new strength in the exporting of manufactured goods, he said.

The debt crisis has shown light to the gaping holes in the European Union’s plan toward debt crisis management, von Alvensleben said.

‘Europe is learning from experience the hard way,’ he said. ‘The EU was unequipped to deal with the sovereign debt crises when they did occur.’

Because of this, European heads of state, specifically the German Chancellor Angela Merkel, developed a mandatory comprehensive strategy to prevent a future debt crisis, von Alvensleben said.

Referred to as the ‘toolbox,’ preventative debt crisis policies include surveying budgetary policies so countries will be examined more closely to detect inconsistencies and emerging unbalances. Also, under the Euro Plus Pact, Eurozone members will commit to common yearly targets and have to implement concrete national reform measures, von Alvensleben said.

For German politics, Europe and the euro are a top priority for the country, von Alvensleben said.

‘Most Europeans share one feeling: never to allow times of division and mistrust,’ von Alvensleben said. ‘We can stand the challenges of the future only together. Germany will do whatever necessary to keep Europe on track.’

Matt Foca, a junior aerospace engineer major, said he enjoyed the lecture.

Because the press portrays Germany as a ‘powerhouse and how the EU economy is basically on Germany’s shoulders,’ Foca said, ‘it was interesting to hear the consul’s perspective.’

mhnewman@syr.edu

Published on October 26, 2011 at 12:00 pm

Contact Meredith: mhnewman@syr.edu | @MerNewman93