Jim O'Neill, the Chairman of Goldman Sachs Asset Management said that the super cycle story that is China and India is so appealing he could hardly bring himself to discuss the problems facing the euro zone as the year started.
But when the man who coined the phrase BRIC for emerging markets Brazil, Russia, India and China came into CNBC’s London offices to discuss India with our colleagues at CNBC TV-18 in Mumbai, we demanded he give us his take on the euro zone’s attempts to put the sovereign debt crisis behind it.
“It is very hard for Europe to talk with one voice. I think the more intriguing thing behind the tone today is that when you have a week like last week, when European markets do so well, the pressure for a coordinated, coherent stance, particularly in Germany, seems to fade away” O'Neill said.
“So now they shift priority to another dilemma about the underlying issue, and I guess that’s the way it is. For us to expect the kind of clarity of purpose and consistency that you'd get from the US on something like this, you’re not going to get it,” he added.
O'Neill believes euro zone policy makers should not let a good crisis go to waste.
“Here is a chance for Europe to improve the structure of EMU (European Monetary Union), because in my opinion this is not a debt crisis, it's a crisis of structure and governance,” he explained.