If invested with popular legitimacy, Europe's success will depend on balancing it with long-term focused meritocratic governance and avoiding capture by short-term and particular special interests. A middle Way between West and East is indeed necessary.
The European Central Bank is acting as if it can dictate terms to Greece, but Greece is a sovereign country. As U.S. banks found out, when someone owes you money and they can't pay it back, you are in as much trouble -- sometimes more -- as they are.
The recent crisis was a failure of risk management -- a diagnosis widely shared among the members of the IIF. But we are also starting the next crisis: the public finance crisis in Europe, the United States and Japan.