Greece is on the verge of leaving the Euro and the European Union. The French bank BNP profits have dropped 72%, Italian bonds have reached all time highs, Ireland is scheduled to miss targets; growth has been downgraded. European Union will withhold aid, which Greece desperately needs next week (which is required to pay public wages, etc), if a referendum is scheduled on the bailout package.
A vote of confidence for the Greek Prime Minister is being held tomorrow, yet there are rumours of his inevitable resignation by the end of t0day. Germany is refusing to finance any increase of the EFSF and Britain has vetoed a European Financial Transaction Tax (and rightly so) – and the French are still protesting against the stability fund being used to bailout struggling banks.
It is a disaster. The Union is on the brink of collapse.
The probability of another country, such as Ireland, leaving the Euro is likely – if Greece is thrown out. The ‘firewall’ might involve expulsion of the PIGS (Portugal, Ireland, Greece and Spain) in order to prevent a economic collapse of the entire Eurozone. However, even one departure could question the validity of the Euro currency.
In its current incarnation the European Union is dead, unworkable and politically inept. This modern Austrian-Hungarian Empire is crumbling from within; social and economic problems are tearing the union apart. And let’s not kid ourselves, the European Union was never that united to begin with.
Europe is about to experience a Dark Age-esque period of economic misery. The glutenous spending spree has arrived at a horrifying nightmare, with governments being unable to repay their enormous debts. Either a more democratic and decentralised Brussels will emerge or the mother of all power vacuums is a matter of weeks away.