Monetary union has left half of Europe trapped in depression

[SlowDownFast]

Monetary union has left half of Europe trapped in depression

By Ambrose Evans-Pritchard
Last Updated: 6:52PM GMT 17 Jan 2009

Events are moving fast in Europe. The worst riots since the fall of Communism have swept the Baltics and the south Balkans. An incipient crisis is taking shape in the Club Med bond markets. S&P has cut Greek debt to near junk. Spanish, Portuguese, and Irish bonds are on negative watch.

Dublin has nationalised Anglo Irish Bank with its half-built folly on North Wall Quay and €73bn (£65bn) of liabilities, moving a step nearer the line where markets probe the solvency of the Irish state.

A great ring of EU states stretching from Eastern Europe down across Mare Nostrum to the Celtic fringe are either in a 1930s depression already or soon will be. Greece's social fabric is unravelling before the pain begins, which bodes ill.

Each is a victim of ill-judged economic policies foisted upon them by elites in thrall to Europe's monetary project – either in EMU or preparing to join – and each is trapped.

As UKIP leader Nigel Farage put it in a rare voice of dissent at the euro's 10th birthday triumph in Strasbourg, EMU-land has become a Völker-Kerker – a "prison of nations", to borrow from the Austro-Hungarian Empire.

more:
http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/4278642/Monetary-union-has-left-half-of-Europe-trapped-in-depression.html

[fasttense]

1. That neoliberal (you call it "free" market) economy crap doesn't

seem to be working so well over there. Seems crappy ideas sink all boats.

[girl gone mad]

2. k&r

The Euro is looking increasingly unsustainable.

[Joanne98]

3. I posted a video of the riots today.......

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=385x261387

[anigbrowl]

4. You know the Telegraph is an ultra-conservative newspaper, yes?

Not where I'd go for objective economic commentary. Try the FT.