An economic commentator says the harsh austerity measures implemented in the Eurozone are likely to provoke massive protests in the bloc, which could be beyond the control of the ruling elite
So as long as the governments in Europe continue to beat the drum of austerity measures, it will reflect in high unemployment because effectively what you see is that when there is austerity measures, the government is not spending money, the unemployment register increases, when people are unemployed they are unable to pay their taxes, they do not have enough money to buy products in the economy so it becomes a very circular situation and we the demonstrations in most of the European countries on the Labor Day, strikes in France, in Spain, in Italy, in UK and most of the other countries.
So the recession is really here to stay, I think, and all these measures which are being taken, the fiscal measures, the fiscal difficulties that are being faced by Eurozone countries will not go away by austerity measures.
This is not just [what] I as an individual economic commentator [am] talking about; most of the analysts, most of the fair-minded commentators are really talking about this particular issue, that the more we want to implement austerity, the more difficulties the Eurozone economies will face. There is no doubt at all in my mind about this.
As I reflect how I read the news thinking something was missing with the credit downgrades on the European continent it dawned on me as well, yet I didn’t post about it. A few days later, this story took those words right out of my mouth. Meet the “King of the North”. You’re seeing the beginnings of a German-led super-state and global dominating continent.
The only major EU nation to avoid the latest downgrade was—surprise, surprise—Germany. In fact, only four eurozone countries remain with an AAA rating.
Because of this, “pressure is likely to increase on Germany, the country long viewed as a model during the crisis, but also the one that holds much of the money that is needed to solve it,” Der Spiegelreported Saturday.
Following the downgrade announcement, German chancellor Angela Merkel said Saturday, “We are now challenged to implement the fiscal compact even quicker … and to do it resolutely, not to try to soften it.”