Armstrong Economics Blog/European Union
Re-Posted Jun 4, 2017 by Martin Armstrong
Those who think that the election of Emmanuel Macron to the Presidency of France is the savior of the Euro probably believe that politicians are really there for the people rather than themselves. Macron’s idea of federalizing Europe some call the “transfer-union” is politically never going to happen. The EU is being torn apart at the seams for centralized government dictating to an economy and regulating everything just does not work. Ask Russia and China.
Socialism is the same as Communism, with the minor distinction that you formally own your property, but are regulated and taxed so you are still not “free” to do as you like. To a large degree socialism is worse for you have to fill out forms and pretend that your vote will actually change something – when they do not listen anyway.
The federalization of Europe dictated from Brussels cannot work. The people of Europe will NOT be happy to send 20% or so of GDP through Brussels. Unemployment is at the very best double that on the United States on average and in the South you have a 60% level of unemployment among the youth.
The “transfer-union” idea of Macron is really trying to solve France’s problems by spreading the losses to everyone else. He was the bureaucrat under Hollande and his “investment banking” experience in Paris is a joke. He understands no more about international markets than a teller at a drive up window.
This is just not going to happen! You cannot solve the problems of Europe with the very same thinking process that created it! The EU is creating the risk of a European War fueling the tensions rising from old wounds. The idea that a single government would end European War was a dream theory. The problem has been the EU mismanagement and now it’s all about forcing states to prop-up Brussels.