Monday, 27 June 2016

European Union is at war with itself and recriminations have just started

The images depict what is happening not just in Sweden but also in Germany, in France and in other European countries.

The statements about a happy and rosy European Union are mere fantasy. France - one of pillars and funding members of the European Community - now European Union - is in serious trouble and something similar can be said about many of the other EU countries.

When things get to a head, isolated grievances become one major conflict. We cannot talk about a prosperous EU with youth unemployment over 50%.

We cannot talk about protection of workers' rights when a Socialist government in France is implement a regime that make job security a thing of the past. Wherever you look from a financial point of view, from a social point of view and from a political point of view there are serious concerns.

Many countries can bear dealing with a massive financial crisis but Germany is not one of them. Historical records tell us that whenever there was financial trouble in Germany. If Germany gets into financial trouble centrist parties will be squeezed in the middle and the edges will rise with massive political polarisation.

Let's keep Britain safe. We don't need to get embroiled in the continental mess that sooner than later will push countries over the edge. It is time for cautious preparations. Britain cannot afford to be weak and we know that in the past Britain had to be ready to defend itself not once but many times.

The First World War was said to be the war to put an end to all wars but then came World War Two. After World War Two we were supposed to have peace and then came the Yugoslav War. Peace in Europe will not be guaranteed by a failing European Union that creates rigid systems that limit what any country can do to protect itself from chaos.

The Euro was a political decision that became a political trap. Britain had a painful experience when it joined the ERM and paid dearly because of it. One taxation system for countries that have completely different economic realities is a trap and it is like having currency values that cannot be sustained. Argentina knows a little about it. It pegged the value of its currency to the value of the US Dollar. The Argentine economy was not strong enough to have an overvalued currency. It sold its gold reserves, it stopped making capital payments and in the end stopped making interest payments and defaulted. A country must have a currency that its economy can sustain. Weak countries for which the Euro is n overvalued currency are losing out and don't have the flexibility to adapt.

The European Union with a German locomotive driving extremely fast and many slow carriages that cannot keep up with it is a train that is bound to derail. If France itself - one of the strongest economies in Western Europe is failing to keep up, what to expect from other weaker countries? Spain has become a chronic case of political paralysis with very high rates of unemployment and in particular of youth unemployment.

People talk about stopping the rise of the so called Far Right. Well, the rise of the so called Far Right is the direct consequence of the failures of centrist parties that are more interested in maintaining the status quo even when maintaining the status quo means throwing millions of people over the edge.

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