Dutch Cabinet Collapse Shows Folly of Merkel Fiscal Pact - Bloomberg
I'm more of the mind of this article. I think the reason why the EU is collapsing is because they ended up choking on their excessive austerity measures.
The Netherlands gov't just collapsed and they were in bed with Angela Merkel with the whole idea that they could simply cut public spending and get back to prosperity. Well, the opposite has come true and the Dutch PM resigned and dissolved his gov't.
Francois Hollande, the Socialist from France, could very well win in a couple weeks when France has their run-off election. He is running on a platform to tax corporations and wealthy folks a little bit more, to stay on the road of balancing France's books by 2017, and by making investments in jobs for young people, as well as a nifty move to lower the retirement age by 2 years back to 60 again.
Oh, and Hollande promises to withdraw from Afghanistan this year, and not by 2014 or beyond, as Sarkozy would like.
His plan is to renegotiate the terms of the European bailout, because the one put out by Germany is causing the EU to slide right back into another collapse.
I'm sorry, but Bloomberg's got it right: We have to walk and chew at the same time. Can't just cut our way into prosperity, we must make some key investments as well.
It's this balance that America has adopted that has kept us from going backwards. America has been more judicious and prudent, while the EU went crazy with austerity over the last year or so, and they're faltering while we haven't. If they go down, it won't be because a new person was elected in France, it's because they were already going down with the fix they thought was good that turned out to be wrongheaded.
It's like we're repeating the 20's all over again instead of skipping forward to the part where we realized we needed to invest in ourselves once again. Much better to bring down deficits when you have millions of new people in the workforce rather than cutting everything and having no one contributing to the economy.