European leaders converged in Brussels to figure a way out of a worsening debt crisis and agreed to greater financial oversight and centralization. England refuses to go along with the plan, and Stanford political scientist Francis Fukuyama says he expects some countries will start bailing out of the eurozone.

“The political difficulties of deepening any fiscal union are so great that I wouldn’t bet on that happening,” says Fukuyama, the Olivier Nomellini Senior Fellowat Stanford’s Freeman Spogli Institute for International Studies and a resident at FSI’s Center on Democracy, Development, and the Rule of Law. “The easier path is going to be for countries to begin exiting.”

Fukuyama talks about the summit, the euro’s chances of survival and what’s at stake for America if the currency collapses.

What does the Brussels agreement mean for Europe’s debt crisis?

We will have to see how much of a binding constraint this agreement actually is. It’s just an informal agreement at this point. Political leaders can promise anything at this kind of summit and fail to deliver.

I think the most interesting thing going on is the eurozone – the 17 countries that participate in the euro – is actually splitting off from the greater EU. The reason that’s happening is that in order to save the eurozone, they need to make certain decisions on this type of deepening control. And countries like Britain will never go along with this. The 17 countries have to create their own unit that can make decisions at the expense of the larger EU.

Explain Britain’s refusal to have its budget reviewed by the European Commission

The UK is like the United States – they’ve always been jealous of their sovereignty. If you go to England and talk about crossing the Channel, they’ll say, “Oh, so you’re going to go to Europe.” While an American would say “England is a part of Europe.”

There’s a strong strain – especially within the conservative party – that really does not want to give up authority to what they regard as a bunch of French socialists in Brussels. That’s their vision of what the EU really represents. So they’re resistant about being dragged into any German scheme to deepen the powers in Brussels to include control over national budgets because that is a core element of sovereignty. The majority of people in Britain will say that will happen over their dead bodies.

What is the likelihood that countries will begin exiting the eurozone?

I don’t think it makes sense for a country like Greece to stay in the eurozone. It’s a matter of national pride that they don’t want to be the first country out, but it’s very hard to see how they actually return to growth under a system that links them to Germany in terms of the price of their currency. Long before there’s any kind of centralized fiscal reform that’s imposed on Greece, Portugal and these other peripheral countries, I think it’s more likely that they’ll exit. The euro will probably remain, but it will be at the core of the more stable countries.

What mechanism is there for countries to exit the eurozone?

There is no mechanism. Not only is there no legal way of exiting, there’s no disciplining mechanism. You have a stability pact where countries agreed they wouldn’t run a budget deficit greater than 3 percent, and Germany was really one of the first counties to violate that. But there were no sanctions. That’s the problem right now – there’s neither discipline nor an exit mechanism. That’s why everyone is fearing a disorderly, messy breakup of the EU, which would be extremely damaging.

President Obama has said the U.S. “stands ready to do our part" to help Europe resolve its crisis. What can America really do?

It’s an indication of how far we’ve fallen, but there’s really nothing concretely we can do apart from possibly increasing our International Monetary Fund share. But the IMF doesn’t have the ammunition to really help at all in this particular crisis. So all we can do is sit on the sidelines and try to get the Europeans to take our advice, which a lot of them are not inclined to do given the mess that happened on Wall Street three years ago. It’s a mark of the diminishment of overall American influence that we’re simply relegated to the sidelines of this crisis.

What’s at stake for America in the wake of a total European financial meltdown?

There’s a lot at stake. We are slowly crawling out of the biggest recession since the Great Depression. The one thing that could really send us back into a second leg of a recession is collapse of the European financial system and panic in Europe. If Europe doesn’t do well, the United States isn’t going to do well.

The Freeman Spogli Institute for International Studies at Stanford University is pleased to welcome Karl Eikenberry as the 2011 Payne Distinguished Lecturer. 

Eikenberry comes to Stanford from the U.S. State Department, where he served between May 2009 and July 2011 as the U.S. Ambassador to Afghanistan. In that role, he led the civilian surge directed by President Obama to reverse insurgent momentum and set the conditions for transition to full Afghan sovereignty. Earlier, he had a 35-year career in the U.S. Army, retiring in April 2009 with the rank of lieutenant general.

“I am delighted that he has joined us,” says Coit D. Blacker, FSI’s director and the Olivier Nomellini Professor in International Studies. “Karl Eikenberry’s international reputation, vast experience, and on-the-ground understanding of military strategy, diplomacy, and the policy decision-making process will be an enormous contribution to FSI and Stanford and are deeply consistent with the goals of the Payne Lectureship.”

Eikenberry is a graduate of the U.S. Military Academy, and has master’s degrees from Harvard University in East Asian Studies and from Stanford University in Political Science. He was also a National Security Fellow at the Kennedy School of Government at Harvard, and he earned an Interpreter’s Certificate in Mandarin Chinese from the British Foreign Commonwealth Office while studying at the United Kingdom Ministry of Defense Chinese Language School in Hong Kong. He has an Advanced Degree in Chinese History from Nanjing University in the People’s Republic of China.

"Karl Eikenberry first came to Stanford as a graduate student in the Political Science Department in the mid-1990s, and we are extraordinarily happy to have him back," says Stephen D. Krasner, deputy director at FSI and Graham H. Stuart Professor of International Relations. "He has an exceptional, actually unique, set of experiences and talents that will greatly enrich the intellectual community at FSI and throughout the university."

Eikenberry's work in Afghanistan includes an 18-month tour as commander of the U.S.-led coalition forces. He has also served in various strategy, policy, and political-military positions, including deputy chairman of the North Atlantic Treaty Organization (NATO) military committee in Brussels, and director for strategic planning and policy for U.S. Pacific Command.

His military operational posts included service as commander and staff officer with mechanized, light, airborne, and ranger infantry units in the continental United States, Hawaii, Korea, and Italy. His military awards and decorations include the Defense Distinguished and Superior Service Medals, Legion of Merit, Bronze Star, Ranger Tab, Combat and Expert Infantryman badges, and master parachutist wings.

Eikenberry has also published numerous articles on U.S. military training, tactics, and strategy, on Chinese ancient military history, and on Asia-Pacific security issues. He was previously the president of the Foreign Area Officers Association and is a member of the Council on Foreign Relations and the International Institute for Strategic Studies.

At Stanford, Eikenberry will also be an affiliated faculty member at the Center for International Security and Cooperation (CISAC) and at the Center on Democracy, Development, and the Rule of Law (CDDRL).

He will deliver this year's inaugural Payne Distinguished Lecture on Oct. 3 at the Cemex Auditorium at the Knight Management Center. The public address will be given in conjunction with a private, two-day conference that will bring to Stanford an international group of political scientists, economists, lawyers, policy-makers, and military experts to examine from a comparative perspective problems of violence, organized crime, and governance in Mexico.