Armstrong Economics Blog/European Union
Re-Posted Dec 21, 2017 by Martin Armstrong
My recent meetings in Brussels reveals some concern what happens when Merkel loses power? Schultz is calling for the complete federalization of Europe – the United States of Europe as he puts it. The power is starting to slip between their fingers and as Italy approaches its confrontation with the EU in the next elections, there too we see the Social Democratic ruling party PD is losing its support in the same manner as the SPD in Germany.
Now with only a few weeks before the expected dissolution of the Italian parliament before the new elections, the PD is already down to only a 23.4% approval rating. The Socialist agenda is losing around the world just as Hillary lost in the States as did Schultz in Germany.
In Italy, the center-right coalition of former Prime Minister Silvio Berlusconi is on the road to a major come-back gathering 36% of the polls, which is the strongest political party in Italy right now. The second party in line is also the anti-Euro Five-Star movement coming in at 28.2%.
If the polls are correct and the election took place today, 64.2% of the people would vote AGAINST the EU. This type of coalition could become the strongest single party in the next parliament and the strongest as a percent of the population throughout Europe. There is a rising feeling in Italy that the EU has been a disaster burdening them with refugees they refuse to compensate or allow to move north within Europe. Italy is now just trying to keep the EU out which or interfering ever again.
In Italy, a new parliament is likely to be elected at the beginning of March. It is expected that President Sergio Mattarella will dissolve Parliament between Christmas and New Year, paving the way for new elections.
I previously wrote that it was the EU which conspired to overthrow Berlusconi because he was anti-Euro back then and wanted to take Italy out before BREXIT. For Berlusconi, this is political payback.
The more political chaos in Europe, the crazier the markets will become in 2018 driving the dollar up until the monetary system cracks wide open.