In a wide-ranging interview on CNBC this morning, Alcatel-Lucent CEO Ben Verwaayen (News - Alert) shared his views on the impact of the sovereign debt crisis in Europe along with the outlook for the company and communications industry overall.

In regard to the European financial crisis Verwaayen was very blunt. “We have a problem called time. We have run out of it… Muddling through is way we have always done it. However, 2012 is an election year. We have to take the big step that we are all in it together,” he stated. For the sovereign debt crisis to be resolved and a possible contagion mitigated, Verwaayen says there needs to be a transfer of wealth from the North of Europe to the South. He observed that, “We do not have the luxury to sit back and relax… (Yet) we will wait until last second and then the politicians will reluctantly do what should have been done.” Implied was that it will not be an elegant or even the best solution.

Unfortunately, based on the fact that there will be elections in 2012 not just in Europe but in much of the world including the United States, Verwaayen was not optimistic. The consequences for the global economy will not be good, especially in Europe where he sees no growth over the next 12 months. He says that businesses and consumers are waiting for the same thing: the end of an era of bickering and lack of leadership.

It was not all gloom and doom. Verwaayen says that as developed countries (particularly the U.S. and China) transition from voice to video, there will be significant growth. Alcatel-Lucent is well-positioned in these markets.  In fact, in response to a question about whether 4G LTE (News - Alert), where Alcatel-Lucent has a leadership position, will be the primary growth driver, he said, “Ask how many people have a smartphone. Most people do not. As long as that keeps going there will be growth in this sector.” But he added that this was not the only area of growth, which he later amplified.

Concerning what is and should be top of mind for business people and politicians alike, Verwaayen was adamant. “The most important subject to talk about is jobs. We have not used all of the opportunities the digital economy has given us.” He said we must invest in broadband access because business cannot compete either locally or globally when they are bandwidth constrained. Jobs will be created in the build out of such high-speed networks and the multiplier effect of being able to leverage them will be significant. However, he could not resist coming back to the point that politics -- and the impact lack of decisiveness and predictability has on investment and job development -- stand in the way. He says this must change for the global economy to maximize the true potential of the digital age.  There is a lot of work to be done and the benefits are outstanding if the commitment is there to do them.

On the question of Alcatel-Lucent’s (News - Alert) fortunes, interestingly, Verwaayen returned to the subject of time.  He stated there is incontrovertible proof that investment in innovation over time pays big dividends. That is why Alcatel-Lucent invests, “15 percent of revenues in R&D. Bell Labs (News - Alert) is alive and kicking,” he said. However, for that investment to be fully capitalized upon will take time. He mused that, “We have taken time away from business. Everything is in 90 days. I have said I will take long-term everyday over short-term.”

The interview closed by coming full circle. In a paean that has become almost a necessity in any discussion of economic prospects, for the third time he emphasized that the biggest risk is coming from politics. He fears that the election cycle will be dominated by ideologues who will say, “There is never a day you have to pay for it.” Verwaayen says we must have a day of reckoning and it needs to be now that the obligations of the past be addressed and that burdening future generations is not the solution. He closed by saying this is a global phenomenon. “This is what we have to do and it is a harsh reality.”

Will the politicians solve the financial crisis? Will investors properly focus on how value is created and sustained instead of focusing solely on short-term performance? Only time will tell. The question for all of us is, how much time do we really have to resolve the challenges that exist? You have to admire Verwaayen for bravely investing on a long-term view. Time, after all, is the one resource we can’t make more of.

Peter Bernstein is a technology industry veteran, having worked in multiple capacities with several of the industry's biggest brands, including Avaya, Alcatel-Lucent, Telcordia, HP, Siemens (News - Alert), Nortel, France Telecom, and others, and having served on the Advisory Boards of 15 technology startups. To read more of Peter's work, please visit his columnist page.