Is the EU going to collapse?

Discussion in 'Europe' started by Divine.Wind, Aug 7, 2011.

  1. Divine.Wind
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    Divine.Wind American Moderate Gold Supporting Member Supporting Member

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  2. Swagger
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    Swagger Gold Member

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    A common currency that incorporated economies at various stages of development - some only just (at the time of admittance) realistically recovering from the effects of communism - was always going to be a recipe for disaster. It's federalism at its most blatant.
     
  3. Divine.Wind
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    Divine.Wind American Moderate Gold Supporting Member Supporting Member

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    Possibly. Not much different from the United States before the Civil War. Definitely before the American Revolution.

    Still, if the EU collapses, the global economic effects will be devastating.
     
  4. Swagger
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    Swagger Gold Member

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    Before and some time after the American civil war, America was a largely agrarian economy and society. It wasn't interlinked with foreign economies or suseptible to the potentially extreme contractions of an economy that shared a common currency with more prosperous neighbours/partners, who were all subject to a central authority. It (the eurozone) is a completely different economic environment to mid-19th century America, in which you either worked or starved. I don't know how you can justify such a hypothetically unfeasable parallel.
     
    Last edited: Aug 7, 2011
  5. Divine.Wind
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    Divine.Wind American Moderate Gold Supporting Member Supporting Member

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    Yes. I heard they didn't have television in those days too! :eusa_angel:

    No, I was speaking in terms of autonomy and state sovereignty, not the exact nature of their economies. Obviously things have changed a tad in the past two centuries.
     
  6. California Girl
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    California Girl BANNED

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    France seems to be having a few 'issues'. It's bringing in austerity measures in order to try to keep its AAA rating.

    Interesting concept, most EU countries are either voluntarily or with some encouragement from their neighbors, opting for austerity measures. What do the Democrats want to do? Yea, spend more money we don't have. If it wasn't so damned stupid, it would be funny.
     
  7. PeteEU
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    That is not exactly true. The austerity measures are being brought forward, and unlike the US, most European governments are some what forced to keep their budgets in somewhat balance. Large deficits over time (at least for most countries) is not seen on by the people as a good political move and the governments that manage to screw that much up are usually replaced.

    Now the reason they brought the austerity measures forward was in large part due to the world markets being a bunch of teenagers who are having hysterical fits over nothing. Also the new big thing in the world seems to be austerity over growth and jobs for some reason... which is fine, but then dont come afterwards and complain that European countries have too high unemployment and low growth..

    also not exactly true. Much of the overspending at present in the US, is related to previous administrations and congresses. Sure Obama and his administration and the Dems have big portion of blame, but lets not forget that even during the 100% control of the GOP years, the deficit was large and the debt exploded..... during boom years. At least Obama has the "excuse" of the economic melt down to explain in part the problem now... what excuse did Bush and Co have?

    I am not saying it should not be delt with, but the amount of money and cuts required to even get close to a balanced budget are so huge in the US that such cuts would gut any growth for years and cause an economic crisis world wide. And especially when the US right is in their childish mood of not wanting any tax increases what so ever.
     
  8. Divine.Wind
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    Divine.Wind American Moderate Gold Supporting Member Supporting Member

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    You are missing the point. The EU is like a tripod with countries like you mention holding up two legs and countries such as Greece, Ireland and Portugal holding up the third leg. If one leg collapses, the entire tripod falls over. The countries you mentioned will fair better, but the EU will be gone as we know it along with many of the economic advantages of the Union. It would be, as some Americans want, that each of the United States went their separate ways. Sure, there'd still be some trade, partnerships and less Federal taxes so the rich states won't be propping up the weaker, poor states, but, overall, there'd be a great economic upheaval and a loss to all concerned.

    Another analogy for the EU, as this article mentions, is the Prisoner's Dilemma.

    When Will The European Union Collapse?
     
  9. waltky
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    waltky Wise ol' monkey Supporting Member

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    Uncle Ferd says, "Yea...

    ... EU gonna implode from all dat Greek an' Portugese, an' Spanish an' Italian debt...

    ... an' den dey all gonna be out onna street corners sellin' apples...

    ... just like Granny."
    :eek:
     
  10. Toro
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    Toro Diamond Member

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    No.
     

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