Monday, 7 May 2012
Neither the Euro nor the EU can Survive
The result of the French and Greek elections leave the eurozone in some state of confusion. The French and the Greeks have voted against austerity but still want to keep the euro. The euro cannot work with so many disparate economies signed up to it and as has been made abundantly clear only Germany and its northern neighbours can live with the euro in the way it has been run. For countries like France and Greece to survive in the euro either Germany and co have to leave or the others have to do so. If it weren't for the fact that the unplanned failure of the eurozone will no doubt harm us economically it would make those of us who thought those who brought in and/or supported the introduction of the euro deranged, smile. The idea that rich boy Hollande believes that France can somehow survive in the current euro by loosening austerity policies by employing 60,000 extra teachers, reversing the increase in the retirement age, etc. and paying for it by taxing owners of second homes and increasing tax rates on the wealthy to 75% is risible. He will have to increase borrowing which was of course the problem that got France into the hole it's in in the first place. This is socialist economics spelt large - tax and spend. Hollande is going to bring back into his government that genius Laurent Fabius as Foreign Secretary and I wonder what other failed politician we'll see creeping out of the woodwork. God help us all. As for the Greeks we have no idea whether they will even be able to stitch a government together and what will happen if they don't or even if they do. There is no question that they must leave the euro as presently constituted. They cannot reject austerity and remain as it simply will not work. The euro has proved to be the dangerous experiment many thought it would be. The least problematic solution is obvious but why won't anyone in a position to do so, take it. The disgust of the voters is almost palpable and it will sweep away the EU as well. Bring it on.
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