Europe ministers reach deal on trillion-dollar 'firewall'

Simon Tilford is chief economist at the CER. He says Europe's reaction to its economic crisis is not working. What is needed, he says, is a federalized system where resources cross borders more freely. "I think what needs to happen is that the governments need to accept that a currency union requires a much closer degree of integration than they have been hitherto prepared to acknowledge. So they need some kind of federal budget - the kind of federal budget that effectively transfers funds between the states of the US, for example" said Tilford.