Dr. Benny Peiser28.04.2012 17:18
The foreign minister of Spain has a metaphor to describe Europe’s situation: the Titanic. “Even the first class passengers will drown,” he says, if the ship goes down. The ship is sinking. Spain is the fourth largest economy in the eurozone, and nothing is going right for it. Bad real estate loans in a collapsing housing market are pushing the country toward a huge bailout of sick banks. Unemployment is at a Depression level of 24 percent; youth unemployment is at 50 percent. Interest rates on the country’s debt are up sharply and its credit rating has just been downgraded. The Spanish government has no idea what to do… This has been the problem from the beginning: Club Med doesn’t want to live under German rules and Germany doesn’t want a Club Med currency. Club Med can’t make Germany underwrite the Club’s lavish lifestyle and Germany can’t make Club Med live by German rules. The pain in Spain and the increasingly anti-German, anti-reform tone of French politics point to a deepening crisis with no sign of an exit. Love of the blue social model, Mediterranean style, is killing the European dream.
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