Friday, May 28, 2010

Some thoughts about EU's financial weakness

All 27 EU members are in danger if money from this amazing €60 billion pot is disbursed and finally not paid back, because all members would have to pay extra into the budget to top it up... This great plan, is it going to work?...

For a while, I thought there is an international conspiracy to destroy the euro... and I am still considering this idea. USA would have reasons to do that and Asian markets too.

The United States of Europe sounds awesome. It's like dreaming about re-uniting Moldova with Romania. Futuristic but not impossible.

Some weak countries depending upon others to save them, isn't this quite the beginning of this dream coming true? Not quite exactly as we expected. Mutual aid, bailouts, support are welcomed and encouraged, but is it quite the right thing to do? An attack on one member is perceived as an attack on all. That's a good thing, though the means are risky for all countries in the long-term.

Though necessary, steep tax increases and deep spending cuts are likely to plunge us into a deeper recession this year, because there is no country in Europe able to counterbalance the high-deficit countries' financial situation by an aggressive economic stimulus of its own; not even Germany.


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