Is the World's Biggest Economy [European Union] in Danger of Disintegrating?

[$teve]

This is an interesting article because it not only contends the EU is in danger of breaking up, but makes some intriguing statements about its leadership. Given we understand the anti-christ will come from Europe, it just seems eerily coincidental that Europe lacks leadership at this current time in its financial and economic crisis.

The call for leadership, both "imaginative and inspiring" and European political union is loud and clear here!

The Eurozone crisis had subsided there for a while but it has come back with ample media attention on it as signs of deterioration reemerge in its financials and economics. In fact there's been a few articles mention it is actually worse now that bigger economies in Europe are now being adversely affected.

It could get very interesting here going forward.

Is the World's Biggest Economy in Danger of Disintegrating?
Published: Friday, 13 Apr 2012 | 5:47 AM ET
By: Antonia Oprita
Deputy News Editor, CNBC.com

"Clearly I am very worried because the movement towards European cooperation or integration seems to have stalled at the moment and the aftermath of the euro crisis is going to make the movement towards disintegration more powerful," Stephen Tindale, Associate Fellow at the Centre for European Reform in London told CNBC.com.

"There's a clear need for some imaginative and inspiring European political leadership and there's no obvious figure willing or able to play that role," Tindale added.

This is the union's main problem: the lack of a common political identity; and it cannot be solved overnight.

According to Tindale, there is no European political identity because the European Parliament – which is made of members elected by citizens in each country – does not have substantial political power and the European Commission – the executive body of the EU – is not an elected organization.

"The fact that there is no European political forum is, I think, a significant factor in the absence of an European identity," he said. "I think that moving towards electing the European Commission is a sensible route to go. That would require changing the Treaty and referendums in some countries."

The trend towards divergence, rather than convergence is not only visible in politics. In economics, too, more often than not national interests take precedence.

"We've argued for some time now that the euro zone is likely to break up. Greece is likely to leave, possibly as soon as this year, and may be followed by Portugal, maybe by Ireland," McKeown added.

The periphery countries might be pushed out of the euro zone by their electorates, sick of the austerity measures that have plunged Greece, Spain and Portugal into deep recessions, or Germany might get tired of having to foot the biggest part of the bill for bailouts and get out, she said.

However, cultural issues will not change very quickly and "the idea that it's necessary to persuade people that they are European rather than French or German or British" is not a good one, according to Tindale.

"It's possible to be Californian and American; we have to move towards that. It's possible, but that will require greater political leadership," he said.

http://www.cnbc.com/id/47038484

[Godslove]

As long as the powers that be think you can grow an economy by austerity the EU will continue to struggle. IMO

This whole EU experiment was set up to fail from the very beginning as the countries aren't married but they share the same checking account.

They should either break up and all return to their own currencies or else become married into the US of Europe and knowing prophecy I would bet on the latter.

[sjrobert]

Is the World's Biggest Economy in Danger of Disintegrating?

Very deceptive and inaccurate description of the EU. It is not the world's biggest economy because the EU isn't even a cohesive entity, rather composed of nation-states, nation-states which have their own distinct economies. Even the laughable, overvalued Euro isn't even the currency of choice for the so-called EU, only being used in about half of the countries. The very best thing one could say about the so-called and misdescribed EU, is that it is a "loose amalgamation of economies." But, calling the EU the world's biggest economy probably makes the Euro-politicians feel warm and fuzzy. The EU is going to stagger and stumble until the main man puts Euro Humpty-Dumpty together for a short time and for a Biblical purpose. Otherwise, the EU is a joke, dreamed up in the vivid imaginations of Euro-politicians (and some in other western countries) after WWII and accelerated in recent years by hallucinating globalists.

[Buzzardhut]

The world is demanding a world savior to solve the social-economic crisis and they will get one real soon.

[$teve]

What?

Preposterous!

The Eurozone sovereign debt crisis was declared saved and solved only weeks ago!!!

So saith our trusted talented European politicians....

Eurozone crisis roars back to savage Spain

'Today the problem is solved," declared French President Nicolas Sarkozy just five weeks ago. "How happy I am a solution to the Greek crisis, which has weighed on the economic and financial situation in Europe and the world for months, has been found."

Just when you hoped it really was "solved", the eurozone crisis has roared back on to the global agenda.

Like a lingering bad smell, the fundamental contradictions at the heart of monetary union can be blanked out for a while but refuse to go away. The busted banks, the grotesque indebtedness, the inherent contradictions – in recent days they've all burst back into view.

The eurozone has deeply entrenched economic, financial and political problems. No amount of tub-thumping – by Sarko, European Central Bank President, Mario Draghi, or anyone else – can change that fundamental truth.

The focus has been on Greece but now it is most definitely on Spain. Will Spanish debt woes spiral out of control and, if so, can they then be contained? That's the €1 trillion question. But how much is that in pesetas?

The spectre of another eurozone bail-out looms large – only this time far bigger than Greece, involving much larger numbers and in one of the world's major economies. Spain must repay a €11.9bn (£9.8bn) bond on April 30, and another €12.8bn loan at the end of July. If investors refuse to finance this repayment at an "affordable" rate, what happens next? The answer is that nobody knows.

Greece has already enacted the largest sovereign debt restructuring in history to avoid a big, disorderly default. Pulling that off involved a €110bn EU/IMF package in May 2010, another €170bn this year and a hefty bondholders "haircut".

What would it take in Spain if that's what in took in Greece? Spain is a "grown-up" economy. Should Spain need a bail-out, and if (a big if) one can be afforded, then who's next? Where does this madness end?

In February, Spanish banks' net ECB borrowing was €169.8bn – a staggering 47pc of ECB lending to all eurozone banks. In March, that figure surged again, to €316.3bn. Spanish banks are now under intense pressure and that distress, as it bursts into the open, will soon be dumped on the state.

"Economic spring is in the air," said International Monetary Fund supremo Christine Lagarde, chiming in behind Sarkozy. Nothing as dramatic as a Prague spring or an Arab spring, one hopes. But the signs for Europe are ominous.

http://www.telegraph.co.uk/finance/c...age-Spain.html

[$teve]

This is a very sad story published by the New York Times. I only cite a section, full article at link.

Increasingly in Europe, Suicides ‘by Economic Crisis’
By ELISABETTA POVOLEDO and DOREEN CARVAJAL
Published: April 14, 2012

The economic downturn that has shaken Europe for the last three years has also swept away the foundations of once-sturdy lives, leading to an alarming spike in suicide rates. Especially in the most fragile nations like Greece, Ireland and Italy, small-business owners and entrepreneurs are increasingly taking their own lives in a phenomenon some European newspapers have started calling “suicide by economic crisis.”

http://www.nytimes.com/2012/04/15/wo...crisis.html?hp