2. Merkel is to end the EU
Hard hit by the economic crisis and debt, the people are beginning to recall the days of the dictatorship, even as cruel as the “Regime of the Colonels” was, Greece’s growth per annum tripled what it today’s figures. Walking the streets here in Heraklion on Crete, it’s easy to trace architecture and style to a period of opulence in the early 70s when growth bumped the 10% mark. While most people baulk at the idea of a military junta running things, severe austerity prompts everyone to question the Euro.
Greece is a good example of how Eastern Europe has faired since EU ascension. In the 1980s Greece’s debt began to stifle an economy already staggered when the military dictatorships were ended in the 70s. Between 1973 and 1993, inflation ravaged the economy, averaging roughly 18% annually. Without making this story about the Greek bailout, it’s important to note the similarities in between all the Eastern European “pledges” central European EU bosses lured into the Euro trap. In Romania today even the youth believe life there was better during the almost 16 years of Nicolae Ceaușescu.
My wife and partner Mihaela is from Romania, and identifies owing to her parent’s sparse pensions. The situation is mirrored all across East Europe, and overall EU growth in the years 1996 to 2017 has been barely above 2%.
Much of that overall growth was achieved by Germany and other central Europe partners in the early 1990s after the fall of the wall. By comparison, France’s growth has maintained just above zero since the 1960s, and Italy’s prosperity is the inverse of what it was in the late 60s.
The point I’m making here is that the EU has broken growth and prosperity for hundreds of millions of citizens since the 80s. Another example of the disparity in between Frau Merkel’s constituents and the rest of Europe comes in the form of external debt. The EU is tipping the debt register today at about 83.5% of GDP, but Germany’s debt to GDP percentage is only 63.3%. Most of the EU total debt is owned by Greece, Italy, Portugal, and Spain. Interestingly, the debt Nicolae Ceausescu paid off for Romania before his demise has been kept even lower than most other EU nations.
So, Merkel’s EU minions schooling either US President Donald Trump or the Brits on how the EU functions is laughable these days. What’s more, an EU further burdened by a pitiful and destroyed Ukraine economy stand even less chance of ultimate success. In 2004 when Ukraine was on good terms with Russia the debt was an all-time low of just under $24 billion. Today Ukraine’s external debt is almost $120 billion, and approaches 80% of overall GDP. If I did not know better I’d think Luxembourg and Frankfurt bankers are recruiting debtor nations into the flock in order to scarf up more physical assets. Oh, but that would imply some Rothschild sharks wouldn’t it?
€100 billion euro bill to the Brits, bucking Donald Trump’s “Great new America”, kicking sand on Russia and Vladimir Putin, as a political analyst I’ve honestly no clue where Angela Merkel and her throng are headed. One thing is for sure, the failed EU system has no right to lecture anybody or any nation on “how to” run nations.
The disparity in the EU is a blinding reminder of her failures, and the failures of those who put her in power. Another term by Merkel may spell the end of a noble, if haphazardly orchestrated European unity.
Phil Butler, is a policy investigator and analyst, a political scientist and expert on Eastern Europe, exclusively for the online magazine “New Eastern Outlook”