As we begin 2014, Europe has reached a turning point. The financial sector is more stable. The recovery of the European Union economy is expected to gather some speed this year. We are near to completing the "Banking Union", which will ensure we have a comprehensive framework for dealing with bank crises and break the negative link between sovereigns and failing banks. EU member countries are doing what they need to do to repair their public finances. Europe must implement a wide-ranging program of necessary reforms and improve the competitiveness of the European economy.

With new leadership and renewed guidelines for reform, China, too, is poised to roll out comprehensive and deep reforms. The Third Plenary Session of the 18th Communist Party of China Central Committee in November and the Central Economic Work Conference in December paved the way for significant economic, financial, fiscal and social reforms in the country.

Both the EU and Chinese leaderships will need determination to adopt the relevant measures in a holistic and consistent way so that, despite the possibility of the process of change being painful, people at all levels of society can feel the benefits. This will happen if people in both economies can be served by greener, more balanced and more inclusive economic growth.