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EUROCHAM-LIBYA (The European Chamber of Commerce and Industry in Libya) is officially being launched to advance the interests of European companies in Libya.

Today, the EU is facing multiple-crises concurrently. On the one hand, there is a financial crisis which severely shakes the very fundamentals of the European Economic and Monetary Union. On the other hand, the EU is encountering domestic and international legitimacy problems. The EU-US relations are at a very unsatisfactory level; the EU-Russian relations are fragmented and polarizing; the EU-China relations are not pleasing even the minimalists, the EU-Turkey relations have plunged into a standstill.

While the debates in Europe are all about budget cutting, bailouts, austerity programmes, rules, sanctions, one doesn't hear much about real reforms aimed at generating gowth. The lack of growth is what got Europe with debt trouble in the first place. Since the inception of the euro, the eurozone has averaged an annual GDP growth rate of 1.5%. In the second quarter of this year, France the second largest economy in the eurozone after Geermany recorded zero growth.

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The lessons here below are extracted from a report prepared by The U.S. Agency for International Development (USAID) in 2004.

The TNC needs to create an optimal reconstruction effort, one that will delineate precisely the policies, laws, institutions, practices and individuals that will determine the context in which Libya’s economic activity takes place. An important question for the TNC is to organize and structure the reconstruction assistance. Does it have the capabilities and the resources (human, financial, technical) to do so??

As European companies, namely from France, Italy, Britain and Germany are rushing to Libya to get a slice of the reconstruction pie and sign up contracts with the TNC, a new Association under the acronym EUROCHAM-LIBYA (European Chamber of Commerce and Industry in Libya) is currently in the making in order to provide a strong coordinated body for Libyan Pan-European cooperation at the non-governmental level.

The economic, social, and political challenges in the aftermath of the conflict and the removal of Qadhafi are enormous.

At the outbreak of the financial crisis, a consensus existed that the correct way to spur economic growth was through massive government intervention to prop up sagging demand- A Keynesian approach. However, the Greek debt crisis and continuing concerns that sovereign debt defaulst could spark throughout the eurozone have struck fear and in response European governments are now moving into fiscal retrenchment which is NOT the solution.

This article was written by Michael Schuman  a correspondent at TIME

“Anyone who thinks Europe has solved its debt crisis is deluding themselves.