👉The EU on The Verge of Collapse & Implosion like The Ex Soviet Union
The European Union is more divided than ever. The big divide this time is how far financial solidarity can go in fighting Covid19 and its economic impact.
Germany and the Netherlands are vehemently opposed to the idea of the so-called coronabonds. this idea of joint borrowing of debt on the international markets,
to allow member states to finance their efforts of combating the virus but with the full weight of the whole of Europe behind that debt, so the cost would be lower for more fragile states such as Italy.
Germany and the Netherlands are particularly opposed to this.
While 9 European countries, among them, are Italy, France and Spain are demanding common debt Eurobonds also called the coronabonds .
But Germany and Austria and other wealthy north European countries are saying, we cannot afford these Eurobonds, because we do not know how we will come out of this unprecedented crisis.
Italy is asking quite bluntly what the EU is for if they cannot help us now when we need help. Germany, the most robust economy in the EU, does not want to guarantee those loans.
Solidarity always means the taxpayers of the rich member states paying for the poor member states. Is it surprising that Germany and the Netherlands are saying no. If the UK had remained a member of the EU, it too would be expected to make large contributions to this fund, despite the fact that it is really in no position to do so, and never has been. When stressed, the EU reverts to the mode in which it really should operate, that of a loose collection of independent states cooperating where they have a common interest and not where their interests diverge.
Better to get out of EU to local currencies and put taxes on imports and export.
There is an argument that it is bad to put all your eggs in one basket. Certainly, the richer states sharing a basket with the poor is not going to be good for them. If you allow a mixed metaphor, one bad apple will spoil the barrel. There is a myth that pooled resources and shared sovereignty bring stability; in fact, it reduces resilience as a failure of one results in the failure of all. This does not mean cooperation is a bad thing, but it is better to have many different approaches to a problem rather than a single-minded attempt at a solution. The latter can always fail catastrophically. It is apocryphally true that a problem shared is a problem doubled.
The EU would be much stronger as a loose collection of sovereign independent states, who cooperate on issues of common concern and interest. Unfortunately, it has become a centralized, top-down organization that imposes its will on the member states.
In the case of a shared currency such as the euro, top-down is a requirement, so there is central financial control. The only way for the EU to do this is to adopt a federal system of government.
This does not remove the resentment between rich and poor states. It just formalized so that objections do not matter. For an example of this, just consider how the US operates; basically, rich states complain and try and limit aid to poor states. The federal government just does what is politically expedient.
Welcome back to The Atlantis Report.
Today, The Italians are feeling abandoned by the EU during their fight against the pandemic, and are taking to social media to say ‘We save Ourselves’ while burning the EU flag.
The EU is like socialism: everybody wants to live at the expense of others. That's why it's doomed.
The EU has failed, but not just because of the coronabonds.
EU failed because there are closed borders within Europe, countries are seizing medical equipment from other member states, there are emergency evacuations within EU, cargo transit was blocked at one point, etc. It is an unimaginable scenario.
There is a saying in southern Europe, and it is true - We (Southern Europe) work to live, and you (Northern Europe) live to work. And it is true. People will always vote corrupt leftists, and even alternative will do nothing to lower the public debt. Why would the Netherlands finance the Italians' vita Bella.
The EU failed because the whole concept of the EU unworkable nonsense stitched together by eurocrats and special interest groups.
Italy never gained a cent from being a member of the Euro-zone, twenty years of no economic growth. The country was fiddled into currency without meeting basic parameters because Brussels needed more bulk than economic coherence.
Now the moment of truth is approaching when exploited as a peon of Northern economies.
You should NEVER EVER NEVER surrender your own currency and monetary policy.
It is like signing a contract of the eternal slave. Your next, next, next generations will also become a slave.
Unfortunately, the only way to freedom is a revolution and a bloody one, tear up the contract. Not sure the southern countries are strong enough to do so. Even doing this, their economies will continue to be weak, but at least they are in the driving seat of their own destiny.
A weak currency and structural reforms that every country needs to do.
About time for Italians to end the corrupt mess that is the EU.
Italy's economy performed much better before the creation of the Eurozone. In 1991, Italy's GDP was more or less equal to France's, for example.
What has Italy gained from further integration, apart from alien liberal policies and East-European refugees?
It's time for the Italian people to regain their sense of self-respect. The UK has already declared its independence from this monstrosity. Like the UK, Italy can do much better on its own without having to obey policies drawn up in Paris and Berlin.
As soon as the shit hit the fan, all countries in the EU closed their borders and made sure no medical supplies left the country. Solidarity out the window day one. I hope the Italians are not going to forget who came to their aid and who didn't.
Russia and Cuba stepped up and gave Italy the help she needed.
While Brussels and NATO were left looking.
Italy gets as much from the EU as it does from NATO...Orders it does not like, ridiculous refugee policies, and administrative costs it cannot afford.
Southern and Eastern European peoples were always expendable buffer states to the westerners and northerners, sitting on their plump thrones, and issuing edicts.
There is no "European Project." There is only a Holy Roman Empire, the extended version of Austro-Prussian uber-state conjoined at the hip with Das Papsttum, i.e., the Vatican.
None of the sane nations of Europe are willful and willing participants in this dreadful idea (and even those who are are completely alienated by the behavior of their Brussels masters), which should have been euthanized either in 1918 or 1945, but somehow escaped from the morgue half-alive and completely brain-dead. Two-thirds of the European continent, geographically, and about 30% of Europe population-wise is not participating in Der Projekt. And now, Italy and Spain have been effectively booted from the Holy Roman Empire as well and left to dangle all by themselves. Calling the European "Union" a "European Project" is like calling Guam the United States of America. The sooner a gigantic wooden stake is driven through the heart of this horrible artificial beast's heart—the better of all the nations of Europe. And the rest of the world.
The EU has never been about mutual co-operation as they so eagerly claim. It has always been every man for himself with some more 'every' than others - notably Germany and France.
This has never been lost on the public but very conveniently disguised for decades by the apparatchik, who now have nothing to hide behind.
Public perception kept the EU project alive; the public disgust will tear it down.
A breakup of the EU is almost inevitable with disparate taxation and benefit systems, notwithstanding the lingual and cultural differences.
In case one has not noticed, we are faced with a worldwide crackup, let alone an EU crackup.
I suggest everyone watch or re-watch Mad Max in case things get ugly.
The European Union is facing the most important crisis in its history.
To alleviate the negative effects of Covid-19, the EU has decided to suspend Schengen and the Stability Pact.
The issue concerning Eurobonds once again divides the Member States.
At present, the European Union is proving to be one of the geographical areas most affected by the Covid-19 pandemic, which exploded in late November in the Hubei region, China. This was due to the fact that the many EU Member States had direct connections with China, due to a large number of investments made by companies with European capital in the country and the many shifts due precisely to the relocation of businesses to the giant of the Far East. But also because of the fact that Chinese tourism in Europe was the one with the most visitors. However, EU member states that are experiencing the highest number of infections and deaths are primarily Italy, which has long since overtaken China, and secondly, Spain, which will be ready to overcome Italy in the coming days if the situation worsens further. As far as the European Union is concerned, understood as an organism capable of taking the situation in hand by implementing EU policies, it has failed to initiate a common policy to combat the coronavirus pandemic.
Member countries had to take measures of isolation and social distancing at the local level. This caused poor coordination, which was the main cause of the spread of the virus throughout the Union. Even if at the beginning of the pandemic Europe's presence was lacking, it now appears that all Member States are adopting the same method to combat contagion, namely the complete isolation of the population and the closure of production sectors not directly connected to health care. It is a very delicate situation: on the one hand, the European Union must take measures to decrease the spread of coronavirus, but on the other, it is crucial that Brussels is close to its citizens by promoting expansionary fiscal policies within the Member States to encourage greater public investment in the health sector. Precisely for this reason, the EU has decided to suspend two of its fundamental pillars. The first is the Stability Pact, with the Member States now able to exceed the 3% threshold of their deficit / GDP ratio for public spending. The second is the Schengen Agreement, which means that border controls between the Member States of the Union have been restored until the end of the crisis. Two historic decisions for the European Union, which will certainly have important repercussions in the future.
Without a shadow of a doubt, the current moment of crisis that the European Union and its Member States are experiencing is the most delicate in their history. Never before has the Union faced a problem that goes beyond the gravity of the 2008 financial crisis, above all because today the emergency is not only financial but also health, social and political. Eurosceptic parties will seize the emergency situation in order to use it in their favor and increase mistrust towards the European institutions.
Europe has a simple solution; it can implement this.
That the virus was able to wreak such colossal economic damage in Europe, is due first, to apriori economic lethargy, which is now existentially exacerbated.
The severe economic lethargy arose from a self-defeating sanctions gambit, which withered beneficial trade and commercial activities.
And still, depraved and insulated bloviators continually stoke the fires of political and economic suicide, in advocating more of the same policies that led to the socio-economic and cultural cul de sac.
Concisely, both sides are partly right and partly wrong, and how so?
Nations cannot, on the one hand, desire the benefits of sovereignty while clamoring for de-sovereignization as the Latins are advocating.
And on the other hand, the EU federalists cannot clamor for closer integration, while refusing to burden carry.
So what's the middle way out?
Reality acknowledgment on all sides that the era of centralized governance is over, and that of subsidiarity ascendant.
But before then, is the issue of adroitly tackling the fall out of the pandemic, but how best to do so, without further muddling the European project?
That's the critical question, and it applies not only to the Latins, whose crisis is currently front and center, but those as well, whose crises are yet to be.
To do corona bonds is to continue with the apriori inefficiency, considering that there's not an integrated finance system, Europe wise.
To do ESM, exposes the Latins to what happened to the Greeks, and yet, to do nothing, will fracture Europe detrimentally and probably sow the seeds of conflict.
So what to do?
Begin preparing for the return of national currencies, with the euro acting as the lubricator of last resort, which begs another question thus.
How is the euro to be backed and supported, in the event national currencies make a return?
Anyhow, the problem is not just that of money to handle the pandemic, but trade and commerce to restore economic vigor.
Which follows logically, that it's time for Europe to do a true assessment of what the sanctions regime has done to their economies, and what they've gained in return, and to turn their backs on the policies of demonization, slander, confrontations, towards that of dialogue, mutually beneficial relating, harmonious conflict prevention/resolution, and the acknowledgment that the world has indeed changed, and is well on its way to multipolarity, and away from unipolarity or even that of western hegemony.
And the benefit?
Europe, with that new realistic mindset, can return to the types of policies that prevent and quickly resolve harmoniously, conflicts that create situations that fray European unity, like mass migration, which collaterally weaken European cultures and economies.
Concisely, Europe, west and east, will have to imbibe the reality that harmony is the catalyst for economic health, and so far as its prevalence in Europe is desired, partnership with Russia is a necessity.
On the other hand, European policymakers can continue with their failed and detrimental policies of demonizations, confrontations, hubris, vainglory, and ostrich gsmbits.
As their nations unravel.
And that is the prerogative of Europe.
Make hay while the sun shines, before dusk and night arrive.
This is probably the end of the EUROZONE with or without COVID.
The UK departure was the start when their money stops; the subsidies will shrink, meaning any upside for the poorer nations will dry up. The poorer nations are not enough to keep this experiment together, and Germany can only reap the rewards if they have a market to sell to. They sanctioned Russia, lost the UK, and forced the smaller economies into poverty. So where will they sell the products they obtain (on the cheap)from their broke "members"?
The UK departing was a great idea, if they had Russia/China as allies, they burned those bridges so they will have their pride for BREXIT but sell their souls in a deal with the US, a deal that will wreck NHS and whore out society for US BIG PHARMA.
Good luck, Europa.
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