Now that the people of Italy have spoken through their rejection of a national referendum to restructure the government on Monday, the rest of the European Union is on high alert for what could be the next Exit event from the coalition. And while it appears that the European Central Bank (ECB) earlier today followed the Fed’s lead in bailing out and backstopping negative markets as was done following the election of Donald Trump, one finance minister is seeking to save the EU by demanding that both Italy and Greece continue their programs of austerity or get out of the Union forthwith.
German Finance Minister Wolfgang Schaeuble said on Monday that Italy should continue the economic reforms begun by Prime Minister Matteo Renzi, who resigned after a heavy defeat in a referendum on constitutional amendments. – Russia Today
German Finance Minister Wolfgang Schauble urged Greece on Sunday to implement reforms, which had been agreed by the European Union and Greek authorities, if the country wanted to remain in the eurozone.
“If Greece wants to remain in the eurozone, there is no way around it, regardless of the debt level,” Schauble told German newspaper Bild am Sonntag adding that Athens must implement the necessary reforms. – Sputnik News
Both Italy and Greece have not recovered following the 2008 Credit Crisis which saw the two PIIGS nations bailed out by the ECB and IMF and forced to impose massive austerity measures that have destroyed their economies. And now eight years later, the people in each country are beginning to revolt and are seeking alternatives that include the election of radical political parties, and even the idea of defaulting on their debts by leaving the Union.
It is ironic that Germany feels they have the authority to mandate economic policy onto countries in Southern Europe, especially since their own banks teeter on the brink of insolvency. And perhaps they believe the only avenue to save themselves, as well as the EU itself, is to try to bully Italy and Greece into continuing austerity on their people to fund the debt that could domino into a financial and banking collapse should they choose to default.
The bottom line is that the world’s financial and banking systems are past the point of no return, and only radical changes will save the global economy from a new and even worse financial crisis. And like the way the Democratic Party in the United States has reacted following the election of Donald Trump, where they continue to blame everyone but themselves and can not or will not see the world as it is, so too is the EU blind to how bad things really are on the continent, and will continue to ignore the changes being demanded by the people in an effort to try to protect their power and authority all the way until the Union simply ceases to exist.
Kenneth Schortgen Jr is a writer for The Daily Economist, Secretsofthefed.com, Roguemoney.net, and Viral Liberty, and hosts the popular youtube podcast on Mondays, Wednesdays and Fridays. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.