The lack of a highly efficient mutual assistance mechanism has also fuelled the spread of the eurozone sovereign debt crisis. Upon the creation of the euro, there was a regulation that ruled out offering assistance among eurozone countries at any time except for the occurrence of natural disasters or irresistible situations. The regulation also opposed member states seeking help from international bodies. This regulation has caused other countries to stand by as countries struggle with a debt crisis. This probably means that the best chance to give a helping hand to those countries in need has been lost and enabled the crisis to spread.

The problems that have plagued Europe's monetary integration since the onset of the global financial crisis offer a stark lesson to Asian countries endeavoring to promote monetary integration.

The crisis in Europe shows that there are always potential risks for any region that implements a single currency among countries that have huge economic, monetary social, historical, cultural and religious differences. This is particularly the case in Asia, where the differences among countries are much greater than those among European countries.

From such a perspective, Asian countries should not forge monetary alliances in their bid to promote financial cooperation. Instead, they should push for integration in their financial markets and the establishment of a corresponding monitoring regime.

Asian countries should also establish a self-restrained fiscal deficit system. Unchecked fiscal deficits, once exceeding a level that causes qualitative changes, will create the possibility of a debt crisis, especially in the context of an unstable international economic environment.

In their pursuit of greater financial cooperation, Asian countries should also set up an effective monitoring and regulatory system and mutual assistance mechanism. Such measures should effectively punish countries that exceed the agreed debt level and at the same time, cultivate an "Asia consciousness" that will encourage a country to offer timely help to another in times of need.

In addition, Asian countries should abide by the principle of mutual political and economic coordination in a bid to cultivate a strong force for steady regional cooperation.

Prudence in forging a single Asian currency in the foreseeable future does not mean their financial cooperation should stop. Instead, it means Asian countries should accelerate regional trade, investment and financial cooperation to better serve Asian integration and its sustainable development.

The author is an economics professor with the Foreign Affairs College.

(China Daily 07/28/2011 page8)