Zeev's Turnips Patch-No Politics (ZEEV)

[mlsoft]

Zeev...

I do not know how the Euro Union will survive all of this but I tend to think that in some form it will. The "restraints" you refer to are already being ignored to some extent and I expect that to become the norm as the various members (led by the examples of Germany and France) succumb to the realities of their own economic situations - as Tip O'Neill said, "all politics is local." My best guess is that new and much more flexible rules will eventually be implemented and probably monetary policy will be eased as the EU finally comes to grips with the fact that recession and potential deflation, not inflation, is the problem they face. The original rules of fiscal restraint were written during times of great economic prosperity and were wholly unrealistic.

The other big change I expect is that the EU's great social programs will be cut back and labor unions will begin to lose power and influence as the public at large realizes that society can no longer afford such largess. Europe cannot compete with a 3 day workweek, 5 hour days and 3 months vacation with full pay every year (an exaggeration, of course) - it is utterly impossible and there will be social upheaval as those changes are bought about.

mlsoft