Europe in Crisis

[KhanZubair]

Each understands and evaluates the problem as per his/her level of knowledge, experience, perception and exposure to various factors. Accordingly offered solutions to problem also differ. To me in European Union nothing is common specially in those countries not belonging to Western Europe. Biggest saddening part is ocean apart financial and civic amenities difference amongst various nations. I happened to visit intensively certain East European countries. Particularly the village life of such countries depict what I saw in West Africa and in poor Asian and Middle East countries. For example village life in Germany, UK or France has all civic amenities and facilities. The moment you enter in Poland village territory you get an entirely different view. How sparingly resources were spent to raise the standard of East Germany is a good example to quote if Western Europe can do so to raise the standard of newly joined countries. Additionally moral, cultural, educational standards are also wide apart in newly joined countries. Those advocating UEE (United Estates of Europe) at par or similar to USA have to wait may be for many decades that too if top notches start following the model which was adopted by USA. There can be many more crisis which might be waiting in pipe line. However how these will be handled and how those having all the resources will behave and will give up some of the share of their wealth and comfort for their newly joined brethren will decide the future of European crisis. One must give credit to German Chancellor who with some other allies is trying to save the union. But all will depend on the sacrifices the Haves will give for Haven't.

[zummerzetboy]

There's a very interesting and insightful article in today's issue of ekathimerini - here's the link -

http://www.ekathimerini.com/4dcgi/_w...02/2012_427869

On causes -

I was particularly struck by the remarks that Merkel brought about the crisis in the aftermath of the Lehman collapse by insisting all euro-zone countries should guarantee their financial institutions but that those guarantees should be given by individual countries and not the Euro-zone as a whole.

Of course, she has been pushed off that and subsequent stances, as first the EFSF was introduced, then the idea of the ESM, yesterday the Fiscal Compact, today the ECB indirectly flooding countries via their banks with cheap, long term,low security loans, and tomorrow - what?

On consequences -

The article paints a clear picture describing and forecasting the collapse of support for political parties and processes in Greece after the forthcoming elections in the next couple of months.

On the future -

It seems inevitable that in the absence of real help - as distinct from doomed attempts to force externally imposed controls and economic depression - Greece will default, be ejected from or voluntarily leave the euro-zone, and spiral ever downwards into a cycle of devaluation and inflation.

Having brought about this situation will Merkel compound her historic irresponsibilty and abandon Greece - thus demonstrating the falsity of "Ever Closer European Union", and her promises that - "We won't let a Euro-zone country default" - or will she offer real help?

It currently remains true that the Euro-zone as a whole is in balance with the rest of the world so why does she expect the rest of the world's taxpayers - via the IMF or bilaterally - to pay internal Euro-zone debts?

The only answer, unpalatable as it will be to her and to the European Commission, seems to be to retain the Euro for external trading purposes but to arrange outright debt-forgiveness, or internal currency re-alignments, within the Euro-zone itself. Highly conditional loans, called "bailouts" will not suffice.

Acceptance of that solution would be a real demonstration of unity by the Euro-zone countries.

Unfortunately there has been such prolonged avoidance of truly democratic processes in Europe that politicians in most countries will be unable to carry their national electorates with them even if they thought this was the right thing to do.

So, does "European Unity" actually mean anything, or is it just a catchy phrase?

[mancha_negra]

a Alemanha deve à Grécia 575 mil milhões de euros devido a obrigações decorrentes da Segunda Guerra Mundial.

Germany to Greece should pay 575 billion euros due to obligations arising from World War II.

[177]

Just one simple question.
Is the german governemnent sleeping ?
Germany has a good economy because a lot of exporting.
If the Euro crash also for Germany will have a big crisis.
Isn't it ?

[177]

Nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein nein, is she able to say something different ?

[MarkWinkleConsultantOne]

As the lead Financial Consultant on the European Union Financial Crisis, I find it interesting that you think Angela Merkel is the linchpin. Everything that the EU has enacted since last July has been one of my suggestions, not Ms. Merkel's. I have been advising the EU and the IMF since July of 2011 to guide them out of this Financial Crisis.
As a politician, Ms. Merkel has been one of the roadblocks to solving the Financial Crisis, not a heroine. If you would like evidence to back up my claims go to my archive
at winklepublishing.blogspot.com . I store my advice to the EU there for future use.
If Ms, Merkel would get out of the way and allow myself and the IMF to take control of this problem, we could manage quite nicely without the obstruction of another self-serving politician.
I have drafted a Proposed Constitution of the United European Union which is also at my archive blog site. Feel free to scan the nearly 70 posts there.
Tell Ms. Merkel for me that the Financial Consultants working on this problem do not need her help. If she would resign it would make our task easier.
The EU will unify with or without Germany. It is just a matter of time before the EU unifies. I see her as protective of Germany's interests and not as protective of the interests of the entire EU. A large part of Greece's problem in getting out of debt was brought on by Ms. Merkel and Mr. Sarkozy force feeding penalties and wage cuts in the middle of my Austerity plan. I did not appreciate the interference. Like I said before, if she would resign, the Financial Crisis can be resolved without her continued interference.

[177]

Yesterday in Italy strongly, the Merkel declaration had a worst effect on the markets than that of rating agency.
Than today Italy has to pay more and more money to sell its proper bonds.
Monti has every day more difficulties to be approved in the parliament, if Merkel continue with the current position Monti will have a resignation.
At this time also Germeny will have a big problem because il Italy a lot of irresponsible people wants go out of Euro.
If Monti has a resignation this irresponsible will take a leadership.
At this moment Euro will crash definitively and also Germany will have very big damage.

[177]

If Merkel allow nothing the biggest risk in Italy is the Berlusconi return.
And then a big disaster is ensure.
Thake that in consideration please.

[rogermcnair1@comcast.net]

Before proceeding further it is time for Europe to take a deep breath and study what has worked and not worked in regard to bailing out governments. A good place to start is the U.S.A.

New York nor Texas will bail out California if it goes broke; and neither will the Federal Government. And only Californians set the budget for California.

If this works in the U.S.A, what is needed to make it work in Europe?

[SHBasse]

Crisis management the one way or the other is just that.

Propping up the old industrial economies through fiscal capers just prolong the boubble it was ment to mend and end!

The fundamental problem that the old economies no longer are competitive and the question why that is the case, has not reached the political agendas yet.

http://unifiedscience2.blogspot.dk/2...-downturn.html