Aug 18 2011

The end of the EU as we know it – Part II

Published by at 9:01 am under Europe,Opinion,Top Stories

On 25 May last year I sided with those who said the EU doesn’t have much longer to live in its current form. Go here for all I said then about the coming break-up.

Two days ago Germany and France launched their offensive to get the EU to break up and so allow them to build a new, smaller EU consisting of only “disciplined” countries. (Yes, yes, it’s not quite clear whether France can be described as disciplined, but let’s not be pedantic for now…) Of course, Germany and France didn’t announce their offensive in this way. In fact, they left the impression their offensive was about keeping everything intact! So, they said exactly the opposite of what they meant.

The same with Eurobonds: Merkel says we won’t get them, but we will. When the time is ripe. The time will be ripe when the rules of the “new EU” are in place. Until then Merkel will lie about here plans for Eurobonds.

Some call it “practical politics”, or “pragmatic politics”. I call it great.

The markets will take a few more days to catch on to this. It’ll be interesting to see how they react, once this truth hits home.

One response so far

One Response to “The end of the EU as we know it – Part II”

  1. adminon 18 Aug 2011 at 9:53 am

    Me again.

    Maybe I should also just put on record my view that the euro is in for a significant rise. A new, smaller EU consisting of “disciplined members only”, will justify a much stronger euro than the current one.

    Whether there will be a huge dip, before the strong climb, I can’t say. I guess the chances are 80:20 stacked against that happening. The chances are better that, once the markets realize the EU is in for a breakup, they will jump to the next conclusion, namely that there will eventually be a new, much stronger EU and euro.


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