Europe is home to the epicenter of the worst global crisis since World War II, said former European Central Bank (ECB) President Jean-Claude Trichet.
The European debt crisis has forced all major economies to rethink their fiscal and monetary policies regardless of their exposure to Europe.
“The Europeans have a special responsibility because we are the epicenter of the worst crisis since World War II. And that, of course, calls for highly responsible decisions,” Trichet told CNBC.
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While all advanced economies might be suffering, Europe must take the lead by making reforms that will firewall and extinguish the debt crisis that has raged on for more than two years now.
“When you look with historical credit at what has happened since 2007, it was the start of the adjustment of the advanced economy. We have to understand — it's our turn. We cannot ask the rest of the world to finance us eternally if we spend more than we earn. As simple as that,” Trichet said.
“We paid quite a high price for a dominant vision, which was too much benign neglect before the start of the crisis.”
Earlier this year, Greece restructured its debts with private creditors and received a bailout, though the crisis rages on.
Borrowing costs continue to soar in government auctions in Italy and Spain — Spain especially — as investors demand more and more in return for putting their money in countries they see as increasingly risky.
Eurozone policymakers approved earlier this year a $122 billion bailout for Spain to use to prop up its banking sector and assist regional governments, though many believe the country itself will eventually need a sovereign financial lifeline.
Some eurozone finance ministers are outright pressing Spain to clarify whether the country will move forward and ask for a bailout or not and end the uncertainty.
"I'd like them to set out their position because it hasn't been clear over the summer what their position is," said Irish Finance Minister Michael Noonan, according to Reuters.
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