Eurozone: “too big to fail”?

29 September 2011

The Germans have voted that the eurozone is too big to fail.

Just as governments stepped in to save the banks and the international finance houses, which were considered too big to fail, the German parliament has come to the rescue of the euro and the eurozone dream.  It has approved expanded powers for the EU’s main bailout fund.

However many people still think that Greece will default on its debt, and that the focus will now shift to Italy and Spain, which are likely to need even larger bail-outs, which even Germany cannot afford.

This is moving the eurozone towards political union by parliamentary action, as each country forces each other to stick to the new economic austerity through thick and thin.  It will be a shot-gun marriage by Parliamentary financial decisions locking each other into a common economic policy.  This is government by stealth.

The eurozone, like the banks, is “too big to fail”.  However, just as the solution for the banks is to make them smaller or more accountable, so the solution for the eurozone is to make it more accountable to its electorate and possibly, in spite of political wishful thinking, to make it smaller.

The European Union is too diverse in language, culture and religion to operate effectively as a unified governmental body in the current state of world development.  If political unity is forced upon these countries, how will this diversity suffer?  Already in Britain there is consensus that multi-culturalism has been interpreted in different ways, so that minority rights and equality legislation are being used against the free expression of Christianity, and some muslims want Sharia law to operate in areas of Britain.

We need a clear Christian voice in public life to guide this failed European experiment through these rocky times, and to guide our public institutions back to the straight and narrow.  How will our politicians deal with the social unrest and fall-out from these events?

Too big to fail
Not only banks and countries, but also:
Football clubs: 14 Feb 2012 Rangers go into administration and must be saved for the sake of Scottish football.