Summary

Chapter 1 of the report discusses the immediate macroeconomic outlook for the global economy, with a particular focus on the European situation. Chapter 2 focuses on Switzerland, and specifically on the lessons that Europe can learn from the Swiss experience in maintaining cohesion while supporting diversity, and in reaching pragmatic compromises in the creation of common institutions and policies. Chapter 3 analyses the much debated issue of austerity and highlights that fiscal discipline is not only needed to ensure the long-term sustainability of public debt, but also for external rebalancing, which is vital to the long-term sustainability of the euro. Finally, Chapter 4 looks at plans and measures to implement a banking union in Europe and discusses who will pay for future banking crises, and who will end up footing the bill for the latest crisis.