While Europe is sinking, Soros warns of new dangers

SURREY – European Union recently looks more like Berlin-Paris axis dictatorship rather to be union of equal members of the same club. Hostility which is deployed by Angela Merkel and Nicholas Sarkozy towards other nations and their leaders is outstanding and doesn’t shows unity of the institution much needed for salvation of the biggest crisis ever. These two who meet either in Berlin or Paris every single week are acting as saviors but none of their measurements didn’t gave any visible results, didn’t move EU closer to salvation and so far they’re pushing three countries down the drain. Some expert and investors are expecting this course mainly set by German leader will certainly drove EU into the bigger crisis even considered much dangerous and globally destructive than it was in 1929.  On Sunday dozens of thousands of Greeks come out on the streets once more to protests against austerity plans for their country mainly set by Germany and France in effort to save Greece from imminent bankruptcy. Violent clashes with police in front of main political institutions in Athens are nothing new but when these doesn’t went away even when all political forces are united in acceptance of austerity plans something isn’t right. On the other side of European continent we have another patient which is closer to be proclaimed dead than to be saved. Spain once of the the European and world economies today is one of the weakest and most troubled countries probably among all developed or semi-developed countries.

George Soros (Photo by: Sebastien Derungs, WEF - Flickr.com)

Unemployment is still rising threatening to broke once unimaginable border of 50% unemployed with young generations as leaders of unemployed army. Knowing that strongest work force, those between ages 18 to 25 or even 35, are the biggest statistical element in unemployed sections can’t gave us any assurances that Spain will be back on it’s legs in soon future. Just across a Spain and that small patch of Mediterranean sea lays another European problem – Italy. “Super Mario” Monti, technocrat and professor, one of those guys who is loved by everybody and everywhere is trying to turn forces of destruction in opposite directions but he must to do that on Merkozy rules. Well it seems that his laws are going through the Parliament very easily, there’s no large crowds of protesters on the streets but everybody is curious how this situation will be solved. He’s faced with lack of imminent results and recovery which will be visible to others not only in Europe but all over the world.

European opposition, or to be clear David Cameron UK’s PM, didn’t want to pass over to EU Council part of UK’s budgetary independence sensing probably that something isn’t right about that. Well as we can see he was totally right. Austerity plans and all measures presented to EU by Merkozy are not intended to help EU to tackle current problems and move ahead but to ensure that Angela Merkel and Nicholas Sarkozy will win upcoming elections and remain in power. These two are thinking more about their own political future than about hundreds of millions of EU citizens severely hit with all previously mentioned economic, labor and political problems.

On Sunday US billionaire and investor, George Soros, criticized German chancellor explaining that her current policies could lead Europe into the another Great Depression similar to one in 1930’s. Soros who invested a billions of dollars in highly successful projects all over the world said to Der Spiegel in interview that EU doesn’t need more cuts and austerity, in his opinion funds should be injected with fresh money which would help recovery. I agree with Soros that Europe will probably need additional funding from international source either from IMF, Soros calls for it, or from China as Merkel suggest that during her recent visit to Beijing.

When it comes to problems of Greece, tied with enormous interest rates, and Italy Soros said:

“That’s why the country [Greece] can’t be saved today, and the same thing will happen to Italy if we put this country in the straitjacket of paying harsh interest rates.”

Again I need to express my full agreement with Soros when he said that if this scenario plays out, and both countries well including Spain, don’t survive Merkozy experiments Europe will explode and domino effect will hit all it’s members and partners. In my personal opinion European Union members as part of equal members club must to express their own opinions and come out with fresh ideas how to tackle all problems. They must to say “Stop” to Merkozy team and stop their agenda which will kill them just after the funeral to Greece, Spain and Italy probably followed by Portugal. In their favor and as saviors could come voters in Germany and France later this year by voting for right people and right options. Second contingent of salvation could come from international community especially G8/G20 countries forcing Merkozy to chance a course and start working on behalf of all EU and partner members not only their own interests.


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