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.
While aggravated by the ECB's structural weakness, the euro's crisis was caused by the inability of the continent's political leaders to agree on policies to help Greece and safeguard their common currency.