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February 26, 2009

Yes, We Really Want To Follow Down Europe's Path

I mean, just look how swimmingly State-Sponsored Everything is working over there

The vast imbalances that have been allowed to build up under the seductive protection of EMU leave German taxpayers facing bail-out liabilities that exceed the cost of reparations after the First World War, in proportional terms. The political ground has not been prepared for this. EMU was foisted on the German people without a referendum, in the face of deep public scepticism and scathing criticisms by the professoriat. This failure to secure a mandate for such a revolutionary undertaking is coming back to haunt them.

Berlin is at last having to deliver on the Faustian bargain made by Germany's political class when it swapped the D-Mark for French acquiescence in reunification. It must either go the whole way towards EMU fiscal union and take responsibility for Italy's public debt (111pc of GDP by next year), Austria's loans to Eastern Europe (70pc of GDP), the adventures of Ireland's 'Canary Dwarf' (€400bn or so in liabilities), and Spain's housing collapse (1m unsold homes), or jeopardize its half-century investment in the political order of post-war Europe. Letting EMU fail at this stage would have far higher costs than never having launched the project in the first place.

Remember, bureaucrats who've never run any business know much more about how to run yours than you do.

Posted by Mr. Bingley at February 26, 2009 06:47 AM

Comments

I'm beginning to think that all the sacrifices made to win World War II were in vain.

Posted by: JeffS at February 26, 2009 02:58 PM

Amazing how after centuries of bloody wars costing millions of lives and untold billions in monetary costs, bureaucrats are poised to completely wreck Europe with paperwork.

Posted by: Gunslinger at February 26, 2009 05:26 PM

The sacrifices to win WW2 were by the average citizen. What has happened is all
US or European governments no longer represent their citizens.
The governments have become entities onto themselves.It is simple.The governments are an entity to control people.The horse is pushing the
cart, not pulling it.What has the government done
in any country that helped their citizens? Hitler
built the autobahn, but killed 15 million Germans
in exchange.Pres. Bush killed Sadam Hussein, but
bankrupt the US and destoyed our nation in the
process.They should all be lined up against a wall...

Posted by: greg newson at February 26, 2009 11:08 PM