So I think against this background the ECB, the E.U. institutions and the Greek authorities or what is left of them in the process of reaching the new elections, will find a solution.
It will not be the first time in the history of the E.U. that when Europe is really bumping into the wall, all of the sudden minds are focused, political wills converge and a solution is found, but it is a critical situation.
ZAKARIA: When you talk about the need for a growth agenda in Europe, are you saying that the austerity program really haven't worked?
If you look at a country like Ireland, which have done everything it was asked to do or many of the things in terms of fiscal consolidation, cutting spending, raising taxes. It has not produced growth. It has not even produced much investor confidence.
Italy's budget deficit is up, its debt-to-GDP ratio is up largely because growth has collapsed. Should these austerity measures end?
MONTI: First of all, I don't like to speak about austerity. I'd prefer to speak of fiscal discipline. Fiscal discipline, in the end, amounts to austerity if it is not accompanied by other policies. Fiscal discipline, in my view, is there to stay. Italy has done huge efforts towards fiscal discipline and it is now the country which will -- in the European Union which will achieve a structural balanced budget before all the others next year, actually a slight structural surplus. And, yet, growth is not coming.
ZAKARIA: How does that happen? So you, in Italy, have -- you have -- as you say, you have done more fiscal consolidation than any country. You've done structural reforms as well. Now, how do you get that demand going?
MONTI: Exactly.
ZAKARIA: You need somebody to buy your products. Are you saying you want Germany to buy things from you?
MONTI: Well, we are gaining a better position in terms of competitiveness because of the structural reforms. We're actually destroying domestic demand through fiscal consolidation. Hence, there has to be a demand operation through Europe, a demand expansion.
