"We cannot continue in the old rhetoric. It is totally inadequate to the challenges ahead. We need to redesign the European social model and the social market economy. To do this, we need the language of blood, sweat and tears," he said.

Although leaders from both old and new Europe agreed at the forum's closing plenary session that the only way forward is reform, they conceded the reform would involve tough, unpopular choices for politicians and citizens.

Cutting social benefits or raising retirement age is hard to swallow for Europeans. Afraid to put their popularity at stake, politicians are usually reluctant to introduce radical reforms.

But the current debt crisis is an opportunity to push through the necessary but politically risky reforms since there is no other choice now.

"A decade of austerity will be necessary, but 2010 could become a new start for Europe," Quickenborne said, "Either we go to a future of being a footnote of the U.S. or become a world player with more growth."

Latvian Prime Minister Valdis Dombrovskis said the best way to protect the European economic and social model is to focus the European Union (EU) economic strategy on green growth and jobs.
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