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Next move for EU members: Bailing out
Posted By F. Michael Maloof On 07/28/2012 @ 8:59 pm In Front Page,Money,World | No Comments
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BEIRUT, Lebanon – As the monetary crisis in Europe worsens, look for more members of the 27-nation European Union to begin to break from the Eurozone, thereby further distancing those 10 E.U. members who are not on the euro, according to a report in Joseph Farah’s G2 Bulletin.
Analysts believe that those countries such as Germany with strong economies will benefit by disassociating from the Eurozone. Those countries far more dependent on economic assistance from the E.U., however, not only will have increasingly more difficult economic problems but could create a widening rift between the Eurozone members and the larger E.U.
Such a development “would also validate security concerns long harbored by Eastern European and Nordic states,” according to a report from the open intelligence company Stratfor. “The financial crisis will slowly drive apart the constituent members of the European Union and the Eurozone.”
This has prompted several European countries to form regional subgroups, as WND/G2Bulletin recently reported regarding Finland with the other Nordic countries. Their formation is along the line of shared economic, political and security concerns.
“As these groupings form and solidify, they will mark the first appreciable structural change in the European Union,” the report said.
Nevertheless, much of Europe’s financial difficulties are among those 17 countries belonging to the Eurozone, which ultimately created their own financial woes when they came together.
Because they belong to the Eurozone structure, they cannot undertake independent monetary policies, but must rely on E.U. supranational instruments. Those Eurozone countries experiencing economic hardships have to conform to tighter fiscal measures, which is having not only economic but also political and social consequences.
At the same time, solutions adopted by the Eurozone members don’t apply to those economically-strapped E.U. members who don’t belong to the Eurozone.
“In many ways, the divergence of the European Union and the Eurozone will prompt non-Eurozone countries to seek alternative economic, political and security arrangements, particularly by looking to form and develop regional groupings,” the Stratfor report said.
Polarization of the Eurozone and the E.U. countries that don’t belong will only become greater, the report said, resulting in the 27-nation E.U. becoming increasingly fragmented as the Eurozone members consolidate into an independent block while the E.U.-10 form into smaller regional groups.
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