Davos 2013: Heard in Davos

By Bloomberg Briefs - 2013-01-25T17:28:51Z

Photograph by Munshi Ahmed/Bloomberg

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Kenneth Rogoff

Harvard University Economics Professor:

"My best guess is, the euro stays but not everyone currently in it ends up in the first orbit. They're going to need a closer union and put some of the countries like Greece into an outer orbit for a long time. I think Europe's reached a point of greater resilience, but where's the growth? If you don't have the growth, how can you say the debt problem is over, not to mention the governance problem? So they've stretched things out, but we're a long way from the end-game here." Europe needs a central government. "Every time there's a crisis, you can't have 17 governments having to decide on it, you can't have that many voices. At the very least they need a much closer political federation, closer to Canada if not the United States. They're nowhere near it, and I don't think the single currency is sustainable without that."