REFLECTIONS

Posted on September 14, 2011

0


EUROPEAN  UNION FACES CRISIS

AS Europe and the European Union struggles to reverse a plunge in financial confidence, Germany holds the key position to summing the leadership to rescue the Euro. And Europe’s debt crisis is affecting the American stock market and economy.

American officials want Germany to act more decisively because bank lending could freeze up and the result would be another sharp financial downturn o0oon both sides of the Atlantic.

Germany politics have turned conservative, and now Chancellor Angela Merkel is required to get government approval before entering into anymore financial arrangements with EU countries. Many Germans would like  to drop the Euro and return to the Mark as currency. The taxpayers are unhappy about propping up the southern EU countries.

With now Italy and France affected by the debt crisis, problems once dismissed as confined to the distant periphery of Greece and Portugal, have arrived at the core of Europe. France has been at war in Libya, and this expense has not helped its economy. Germany did not enter the Libya fight.

Germany and France have been the key players in the European Union.

This brings about the unavoidable questions about the European Union’s future.

A bit of history about the European Union concept. The Knights Templar of crusader times formed the first banking system which dealt with paper money and covered an area from the Atlantic Ocean to the Ural Mountains.

Afterwards the Austro-Hungarian Empire, a monarchy, in fact, was the forerunner of the European Union, but at that time it was under the Hapsburg family control and ended about 1910.

It is interesting to note that Russia has never been apart of any of these economic unions. The downfall of the Templars and the Hapsburgs was political not economic.

Advertisements
Posted in: Uncategorized