Posted on 07/28/2005 6:48:03 AM PDT by Heebert
Leaders of European Union member states have been reeling from the double rejection of the proposed European Constitution by two of the six founding members, the Netherlands and France. Given a chance to express their opinion on “ever closer union,” for the first time in over a decade and ever, respectively, French and Dutch voters spurned the controversial text against the wishes of their countries’ political, media and commercial elite.
The reasons for rejection were varied and contradictory, but at its roots was dissatisfaction with present economic conditions –foremost persistently high unemployment- and perceived indifference and arrogance with which national politicians subordinate domestic concerns to busy themselves with constructing a supranational entity.
One particular object of derision and scrutiny is the euro, the currency adopted in 1999 by 12 of the 15 member states that comprised the EU before the admission of 10 Central and Eastern European states in 2004. Three ministers in Italy’s governing coalition have augured for a reconstituted lira tied to the dollar and leaders of the German Finance Ministry have at least been privy to pessimistic discussions among private banks concerning the euro’s future. Since the referendums the value of the euro has dropped. As of June 21, the euro was nearing a nine-month low against the very shaky dollar.
Saddled with slowing economic growth, chronic unemployment and threatened by competition from East Asia and Central and Eastern Europe, eurozone member states, particularly the core governments and economies of France, Germany and Italy, are becoming increasingly disenchanted with the common currency. As much a political as economic project, the euro faces grave peril as the impetus, conditions, and justifications underpinning monetary union are beginning to unravel.
(Excerpt) Read more at mises.org ...
Yep, but Soros and Buffett think it is the Dollar that should be failing.
If only the World Bank would realize it.......
and soros and buffet are always right...right?
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