Thursday, March 05, 2009

The euro will outlive the EU

It's a curious thing - opinion on the EU currency, the euro. Over the last couple of months we've been hearing various people such as Nick Clegg saying we need to ditch the pound and join the euro, while on the other you've got people saying the euro is finished.

Personally, I don't subscribe to either view. Oh, don't get me wrong - I agree with Heffer that reality is going to bite the europhiles on the nose pretty damn hard. The fact is that the countries which have tied themselves to the single currency have deprived themselves of the main mechanisms they would normally have used for managing their economies in the recession.

Quite why Nick Clegg thinks we should commit economic hari-kiri right now is beyond me, but the fact that you hardly ever hear from him now - the Lib Dems preferring to put forward the much more likeable and sensible, Vince Cable - demonstrates just how out of touch EU apologists like Clegg are.

I do believe that one or other nation will pretty soon withdraw from the euro and I do believe that that will cause a domino effect. Once one does it, more will follow, but the euro itself will continue even when the only country that uses it is Germany. I expect, by then, it will be called the bundeseuro or euromark, by then - but essentially it will still be the euro.

The EU, though, is finished. As member states stagger and reel from the repeated economic blows this crisis is dishing out, the EU is remarkably silent on what they plan to do. All they can manage is to mouth platitudes about unity and how we must not allow protectionism and nationalism to rear its ugly head once more even as France introduces protectionism and Germany does everything in its power to ensure German jobs for German workers by refusing to allow immigration from recently joined east European EU states.

Instead, all the EU can do is ensure our economies will crumble by insisting on ludicrous taxes and restrictions on carbon emissions to save the world from "man-made" global warming even as it becomes evident that the world stopped warming a decade ago and may well be entering a prolonged and severe cooling phase - as the climate tends to do from time to time.

The EU won't survive much longer. As this crisis deepens the member states will look elsewhere to improve their circumstances and, slowly, but surely the empire will collapse.


Anonymous said...

God I hope you're right!

Anonymous said...

The europhiles have been in the driving seat for over 30 years in the uk and have orchestrated and managed British decline to the point of the dissolution of the uk and England itself. I can see why New Labour on coming to power hurriedly abolished the death penalty for treason, but the tories have been just as bad. Maggie T swung her handbag around but she signed up to it all in the end. The scots always blame her for wrecking scottish industry but the fact is the uk government is not allowed to prop up industry by eu directive. I would like to see the eu crash and burn if only to see the faces of the traitors.

Stan said...

The EU directives have never stopped the French and Germans from propping up their industries, anon - but you are right that the Tories are as guilty as Labour. Possibly more so as it was their government that took us into the bloody thing in the first place. To be fair to Thatcher, though, she did eventually see the light. People seem to forget that one of the main motivators behind the coup to oust her was her EU scepticism.

Toronto Real Estate said...

Interesting article. I've read many like this one predicting the fall of EU and I must say, the more facts I read the more convinced I am that it's inevitable. The Eastern Europe countries that suffer the recession the most are pulling down the EU asking for too much help which it cannot provide. All the countries that do not use the Euro are in great disadvantage though because their currencies, excluding the pound maybe, are falling down hard. Czech crown, Hungarian forint, Polish zloty, loosing their value day by day. I guess the only thing to do here is to wait and see how this crisis will affect the EU.

Take care, Elli