But this has changed with the creation of a European rescue fund in the form of the European Financial Stability Facility (EFSF).

In rejecting the European constitution, France expressed its fear of, among other things, globalization.

No one will descend from the heavens, deus ex machina, to bail out the IMF or the EU.

Globalization has reduced the state s freedom of action, and the European Union has gained in prominence.

It also needs to speak with one voice on matters of foreign policy in order to play a more important international role in solving major conflicts and shaping a more peaceful and balanced world order. Finally, the EU needs to promote social cohesion while adapting Europe s social model to globalization s challenges.

Globalization and interdependence globalization

Globalization and interdependence

But is an EMF really what is required in the long run? I think not.

The newly created European Financial Stability Facility may play a similar role, but its war chest is limited.

The EU s leaders will try hard to keep the IMF at bay.

Globalisation

To be sure, the EU budget contains flexible instruments, such as the EU Solidarity Fund, which provides emergency assistance after natural disasters.

The European Commission and EU member states are therefore planning to increase their assistance, both through the European Development Fund and by developing new sources of financial support.

In the case of countries with poor fiscal positions, Europe s rescue fund, the European Financial Stability Facility, can lend for this purpose.

And the last EU summit announced the creation of a permanent European Stability Mechanism (ESM) a sort of European Monetary Fund with an effective lending capacity of 500 billion.

I. Globalization

Globalization s Assassin

Making Globalization Work

Globalization

Globalization

European Union heads of government, and the European Central Bank, initially rejected the idea of involving the International Monetary Fund, but without a fall back plan.

Agreements with, and access to, the International Monetary Fund and Europe s new bailout fund provide (soft) constraints.

Financing should come from the International Monetary Fund, the World Bank, the European Bank for Reconstruction and Development, as well as from bilateral support provided by the US, the European Union, China, and the Gulf states.

Over a three year period, 67 per cent of the borrowing will be repaid from the European Development Fund allotment.

The problem is that economic globalization has outpaced the globalization of politics and mindsets.

Globalization After the Crisis

Globalization and the Beautiful Game

Globalization Marches On

Adjusting to globalization

But you go for globalization.

But even the creation of a European Monetary Fund cannot save the world economy if confidence between China and the US breaks down.

A recent study by the IMF s research department, using data from the past 30 years to assess the effects of financial globalization, conveys two messages.

Global Solutions for Globalization s Problems

Patriotism in the Age of Globalization

Globalization and Anti Americanism

The Dark Matter of Financial Globalization

The Death of the Globalization Consensus

Globalization and interdependence

Globalization and interdependence

Globalization and Regional Integration Division

(a) Globalization and interdependence

(c) Globalization and economic crime

Globalization is here to stay.

Services Infrastructure for

How do we democratize globalization?