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12/2/10

Crisis in the Eurozone ? - by Stewart M. Patrick

Even as the European appetite for integration diminishes, the best solution to the eurozone crisis may indeed be greater integration. Monetary union developed without the requisite support from political and economic institutions, deprives the EU of mechanisms to enact much-needed policy and reforms.

- Germany's support for integration can no longer be taken for granted: Germany provides a perfect example of these interrelated problems. Whereas Germany has long been the engine of European integration, its leadership is currently lacking. The eurozone crisis has contributed to German disillusionment with the EU; popular attitudes and the priorities of German politicians have shifted from their formerly pro-EU stance. Further, the present rift in Franco-German relations makes effective response to the eurozone crisis particularly difficult.

"Despite the euro crisis, the EU remains the world's most advanced regional integration project. Even if the EU's experiment with a common currency proves to be a failure-which is unlikely-the union's experience suggests that even regions with a long history of war can successfully unify and pool sovereignty within common institutions," adds Stewart Patrick in his report.

Note EU-Digest: The Wall Street Mafia supported by most of the Anglo-Saxon financial media has for some time now carried out a constant negative campaign against the EU and just about anything it stands for or does. The motives are quite simple: its a question of divide and conquer. They believe, and rightly so, that if they achieve in breaking up the EU as a unified force, they will be able to manipulate the individual European countries economies at will. Their lobbying and legislative manipulation are running deep and broad, and the EU better become far more vigilant against these dangerous forces than they have done so far. It might also make more sense for Europe to start looking closer to home in establishing alliances with countries like Russia and Turkey, who over the long haul could well prove to be far more reliable partners than those it presently has . 

For more: Crisis in the Eurozone - Council on Foreign Relations

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