Should the proverbial you-know-what hit the fan, expect a breakup and future realignment with a ‘coalition of the willing’. We could also be looking at a two-tier monetary system. The uniting factor will likely be economically, plus security and defense driven (by fears of Russia), with the former being necessary for the latter. The question isn’t if a crash and subsequent breakup will follow, because it will, but what will lie in the wake of the aftermath.
In an attempt to try to divert a looming economic stagnation in the European Union, some leading German and French economists have launched some plans to try to revive (read: ‘resuscitate’) the economy of the Eurozone by tackling two issues which might have deteriorated the economic situation in the currency bloc.
Even though it’s unlikely that Germany will revert its stance and more than double its investment in infrastructure-related projects, it does look like the country would be willing to keep the door open for private parties to incur the expenditures. Those will obviously have to be incentivized by for instance a tax holiday or some other monetary advantages. But the budget for infrastructure isn’t Germany’s only problem. Because of its rapidly ageing population, there will be a strong need for new entrants on the labor market and those will very likely have to be sourced through immigration. One of the proposed plans is to automatically give foreigners who graduate from a German university a work permit. This should entice more people to effectively stay in Germany and to support the pyramid of the labor market.
Germany used to be the growth engine of the Eurozone but after some harsh decisions to keep its budget aligned with the European requirements, it’s very clear that its economy is in a worse shape than expected. If the European Union won’t find a solution which is easy to implement soon, we might be heading towards a complete economic collapse in either the European Union and the Eurozone. Until recently, Germany and some other strong countries were able to keep the economic growth rate at a decent level, but now the largest economy of the European Union is showing signs of fatigue, a comprehensive action plan will be needed.
And that brings us to the next problem in the European Union. The only thing politicians care about is their own job and job security. Nobody really has the balls to push through a certain reform as he/she knows it will cost votes. Precious votes which could result in not being re-elected for another term. There will be a lot of conversations and talks on a high level in the European Union, but we dare to bet that nothing will really change. As usual. So be prepared for the complete implosion of the EU.
Full article: Is Germany Already Signaling The Complete (Economic) Collapse Of The European Union? (Zero Hedge)