When I was the United States ambassador to the European Union (then the European Communities) in the late ’80s, as preparation for the advent of the euro was taking place, the crosscurrents were strong and visible. It couldn’t possibly succeed, as predicted by many, without a finance ministry for all of Europe, not possible then or foreseeable now.Spot on.
A real look at European debt, which is far greater than the narrowly reported official deficits, bodes badly. Bailouts are being affected by the imposition of rising and unsustainable interest rates. Just look at recent bond yields in Portugal, Ireland and Greece. And what will happen when more onerous austerity programs are initiated to meet new budgetary targets? Will the E.U. survive? Of course it will. It has succeeded in quelling thousands of years of internal warfare. But the euro and current E.U. structure — well, that’s another matter.
Friday, January 28, 2011
Eurotrashed
In a letter to today's International Herald Tribune, Former US ambassador Alfred Kingon summarises the situation facing the euro and the EU:
Actually, this sounds like the thinly veiled federalism often seen across the pond. Not to mention the ridiculous claim of "quelling thousands of years of internal warfare"...
ReplyDeleteThanks F.A. Possibly, but his comment on the euro and the current EU structure is crucial.
ReplyDeleteIt was obvious back then - at the very inception of the EURO - and it is obvious is now; the EURO cannot work without an all powerful EU ministry of finance.
ReplyDeleteHaving had the EURO foisted onto them, these states have then been allowed to stumble, or been pushed, into an economic black-hole.
Now, as planned, the EU member states are forced into accepting a Hobson's choice; EU centralisation of the primary function of self-governance. What else can they do; Accept ruin?
This galleon was known not to be seaworthy before it was even launched. All were told it would be rowed by a press-ganged multi-national crew and, regardless of the dangers, was launched down the slippery slope. But the truth was clear, without a rudder, it could never be navigated - let alone weather a storm. Well, it is sinking now and the crew are told to make a choice; "sink and swim or accept you are now slaves and we will now, as your captain, steer".
Baron M.A. Rothschild wrote, "Give me control over a nation's currency and I care not who makes its laws." How long will it take for people have to learn this lesson? Not till we have grass growing in the streets, not till our children run with no shoes.