The Euro Crisis and the Decline of Europe

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The squabbling among the EU member states is on the increase. As was reported by Presseurop on April 5, 2011, Italy is drawing up a decree to prevent French interests from taking over Parmalat, its agrifood industry flagship.

Another flash point has been on policy over Libya in 2011. The French, who sold Gadhafi Mirage fighters back in 1970, were, under President Sarkozy, engaged in mobilizing the aerial attacks on Gadhafi’s Libya along with Britain in an effort to force him out.  But, the same President Sarkozy only three-years earlier had warmly welcomed the Libyan dictator at the Elysee Palace and denounced “those who excessively and irresponsibly criticized the Libyan leader.”  Sarkozy announced to the press that, “He (Gadhafi) is the longest serving head of state in the region,” as he rolled out the red carpet for Gadhafi.

In contrast to France and Britain, Silvio Berlusconi, Italy’s Prime Minister at that time, maintained a close relationship with Gadhafi, and sought avenues for a negotiated and honorable exit for the dictator rather than war.

Immigration is another contentious point between Italy and France.  The Italian Island of Lampedusa has served as an entry point to the EU from North Africa.  The Italians, who must cope with the unwanted immigrants, resent the French who are stopping Tunisians escapees from the revolution at the France-Italian border and sending them back to Italy.

The EU’s differences in fiscal policies undermined Ireland.  In 1998, the growth rate of the Irish economy was 12%, while the average in the rest of the EU states was 2%. To cool the heated economy and protect against inflation, Ireland needed to raise its interest rates.  At the same time, in the euro-zone, interest rates were lowered to 3%.  The Irish economy began to slide down, and investment in the economy in the third quarter of 2011 fell to its lowest level since records began in 1997.

Members of the 17 euro-zone ECB Board of Directors are unable to set a uniform fiscal policy that would regulate interest rates in these respective states, and the politicians of the same states would not entrust their national destinies in the hands of a bunch of unelected bureaucrats.  With the national currency — a traditional symbol of sovereignty and independence — already gone in the euro-zone, a piece of democracy has gone along with it.  Moreover, a supra-national body such as the ECB cannot possibly reflect the interests of each individual state.

The euro-zone monetary union is ineffective without coordination among the 17 member-states on other economic aspects of micro-economics, such as taxation of capital gain, etc.  The result is an imbalance in the national economies – precisely why Britain declined to join the euro-zone.

As the Greek economy goes south, others, like Portugal, Spain, and Italy, might soon follow, creating what might become a north-south divide in Europe.  Today, newspapers in Greece and Italy are already carrying digitally altered pictures of Germany’s Chancellor Angela Merkel in Nazi uniform moving across southern Europe.  The “ugly German” is back, blamed for driving other nations into poverty.

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  • penny lane

    The US has a far higher deficit than Europe, equal to that of Greece, Italy and Spain, dispite not having a social system like Europes. The only difference is that while the FED may print Dollars whenever it politically wants, the European Central Bank may not, because printing money leads to inflation, which in the end the population pays for.

  • Anthony

    WIll the Moslem settlers continue their journey to Europe now that Europe is broke? It doesn’t really matter anyway, demographically speaking, the party was fun while it lasted, but now the future these lazy hedonists created for Europe will look like Kosovo, another creation of their own doing.

  • jacko

    One of the reasons for Europes decline is the knosedive of the birth rate. Most families ,if there is still such a thing ,have one or at the most 2 children which is below the replacement rate for the population. Therefore migrants are imported to keep the workforce up to scratch. The influx of non Christian or Muslim immigrants who refuse to become Europeans is the beginning of the downfall of Europe as a democratic entity.

  • Indioviejo

    Let the European Union go to hell. We have given too much of our precious blood and treasure so save the ingrates. I hope we may be able to witness their total debassement and Dhimitude from afar.

  • truebearing

    And still Obama marches on, going down the same path that most of the rest of the world has recoiled from. We have a president that, despite being deified by the media for his brilliance, is eagarly following a doomed path, its entire length flanked with dire warnings, straight off an economic cliff. A person of sub-par intelligence couldn't miss the obvious consequences of following in Europe's footsteps, yet Obama has ethusiastically maintained this tragic course.

    Something is false. Either Obama is actually quite dumb, with an IQ in the 80 point, or less, range, or he is intentionally taking America into a black hole. The evidence suggests our trajectory is intentional as hell, and that Obama is a malevolent Meccan Horse. While virtually nothing he has done has benefitted us, or our allies, everything he has done has invigorated the spread of Islam here, and the rise in power of the Islamists in the Middle East.

    • john gerard

      Obama isn’t dumb. He knows exactly what he’s doing. He hates America, and his whole mission is to make America less powerful, less important, less influential, and poorer. That’s what he’s set out to do, and he will be re-elected in November to continue taking the country apart. This is a man who is the son of a Muslim father/step father, the son of a Marxist who married two Muslims, who spent her entire career dedicated to the idea that Muslims are the victims – somehow – of US colonialism. And he spent his formative years in a Muslim, third world sh*t-hole. Answers the question, really…

      • SAM ARISAN


  • john gerard

    Germany never gave up the DM. They just changed the name to Euro. That’s all the Euro is. It’s a fiscal version of the cup-and-ball trick.

  • Vladimir

    "Decades of cradle-to-grave socialism"? Greece was never a socialist. And the other candidates for the next European defaulted too. Who are they writing with the claim for review?

  • Vladimir

    Where is my coment?

  • Olivier Haertig

    Buiding Europe is a dynamic process, with chess and trials, but it goes on. At least, Europe enjoyed 67 years of peace in a row and is still at the head of an incredible cultural, natural , historical and human capital. There are more cultural treasuries in Rome than in the whole US.

    Yes Europe faces a crisis, which is not the first one. But always it grew up through crises, since no sufficient political consensus arises in calm days.
    And do you think serioulsly that the US, China, Midle-east, Africa or India are in such a quiet and reliable situation as compared to Europe? Just check the outrage and the violence of the comments posted about Obama!