Wednesday, 26 October 2011

Devil's Haircut

Europe is on the brink.  When a leader of Germany predicts that potential economic ruin could lead to future lack of peace in Europe, as Merkel did today, it is time to take notice.  Greece, then Italy, and Spain, may default soon, if nothing is done.  It seems an extraordinary failure of nerve and imagination, a bit like the period before World War One, or Two, when leaders dithered, afraid to act, thus ensuring worse was to come.  However, there is another danger, one of too-great union - should the EU become a two or three tier organisation, with some nations fiscally joined at the hip, they may all find it more easy to stumble over the cliff together.  In this way, some British caution makes sense; yet the more sidelined the Tories demand we remain, in the UK, the less control we will have over the deals ahead.  These deals will be trying.  Facing Europe is possible recession, or the meltdown of the Euro, or worse chaos.  One must hope for the best, but hedge bets.
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