Avoiding Brexit was just a step along the way for the European Union to get its act together, Allianz chief economic advisor Mohamed El-Erian said Monday.
Amid a sharp market rally Monday on belief that the United Kingdom will not exit the 28-member EU, El-Erian took a cautionary tone. The rising swell of European nationalism likely will not fade until after reforms to make the region more stable, he said.
"My hope is for a 'Sputnik moment' — the collective realization that if we don't do something now, something bad is going to happen," El-Erian said during a roundtable chat in New York with business writers. "My hope is we get to a growth and economic Sputnik moment."
The term refers to the commitment the U.S. made to its space program after the Soviet Union launched the Sputnik 1 satellite in 1957. It has come to represent a crisis tipping point that prods a nation into action.
El-Erian's comments followed a poll that showed Britons were leaning against approving an exit from the EU in Thursday's referendum.