It seemed clear that Germany (or at least this rather large gathering of government, business, and labor leaders) remains committed to the euro and to deeper European integration, and recognizes that success will require Europe-wide burden-sharing to overcome the ongoing eurozone crisis. The reforms in Italy and Spain are rightly reviewed as crucial, and there appears to be a deep understanding (based on Germany's own experience in the decade and a half following reunification) that restoring competitiveness, employment, and growth takes time.
Greece has no good options, but a serious contagion risk remains to be contained to prevent derailment of fiscal and growth-oriented reforms in Italy and Spain. In the face of high systemic risk, private capital is leaving banks and the sovereign-debt markets, causing governments' borrowing costs to rise and bank capitalization to fall. This threatens the functioning of the financial system and the effectiveness of the reform programs.
Thus, the central European Union institutions, along with the International Monetary Fund, have an important role to play in stabilization and the transition to sustainable growth. Their efforts are needed to bridge the gap created by the exodus of private capital, thereby enabling the reform programs to be completed and begin to take effect. The IMF's role reflects the huge stake that other advanced and developing countries alike have in Europe's recovery: It is a high-return investment.