The European Union and the Euro-Zone crisis, the problem they don’t want to face up to, but it is rolling like a snowball!
The UK is paying a high price to rescue the European Union and its Euro-Zone, it has no choice, a disintegration of both or just the Euro-Zone would be disastrous for the world, let alone the UK but who should really be digging deep into their reserves?
Germany and France should really be digging deep into their reserves to save the Euro-Zone, and probably the whole European Union, because
- It was Germany and France which forced through the establishment of the Euro, against all advice because it simply cannot work without full political and financial union.
- It was largely Germany who insisted on very strict rules for membership of the Euro-Zone covering borrowing and the management of economies and then allowed those rules to be fudged to allow in Greece, Portugal etc. who simply did could not afford to be in the Euro-Zone.
- It was Germany and France who failed to regulate and check what was going on in those economies, therefore allowing them access to cheap borrowing and the poorer countries were like boys in a sweet shop!
The Euro-Zone, lead and chivied along by Germany and France, took an enormous gamble in setting up the Euro-Zone then fudged the rules for joining and failed to monitor or appreciate the danger and in doing so have put, not only the European Union but the world economy in danger. Further reading
If Italy, Spain or both were to default there is just not enough money to bail them out and the Euro-Zone together with the EU would exist no more.
So why don’t the Germans and the French, along with the Netherlands just sort it, simply they could never get approval from their own electorate as one of them said “whenever the people are asked to vote they always vote against the European Union”, neither the Germans nor the French people would tolerate staying in the Euro-Zone if they appreciated the full extent of the problem, because it is not only Greece.
The problems Germany and France really don’t want to face up to are Italy and Spain because neither can really afford to be in the Euro-Zone and they are both in trouble, Italy along with Greece is also rife with corruption but if Italy, Spain or both were to default there is just not enough money to bail them out and the Euro-Zone together with the EU would exist no more.
Euro-Zone bumbling risks global gloom