The President of the European Bank for Reconstruction and Development examines three major ethical problems in the transition from post‐Communist Europe to a market economy and spells out the only real option for Western Europe. He delivered this address, which is reprinted with permission, at a Conference on Business and Moral Standards in Post Communist Europe held in London in November last year under the auspices of the Archdiocese of Westminster and sponsored by the Sedgwick Group and KPMG Peat Marwick.