The EU summit on Thursday ended illustrating the deep divisions and how the EU is collapsing. Poland has rejected the re-election of President Donald Tusk, who is Polish, for his autocratic leadership that refuses to look at the economic decline. Poland tried to block his election and this has led to a deep disagreement between Poland and the rest of the EU member states. Poland denounced the EU as an instrument of German power interests and vetoed all resolutions of the summit. Poland responded to its efforts to prevent the confirmation of Tusk at the head of the council.

Tusk, in response, warned Poland: “Be careful what bridges you break behind you,” he said. Because after “you can never cross them”.

The Polish government has made it clear that Germany refuses to listen to the views of other members and imposes its economic views of austerity upon the whole of Europe because of Merkel’s misapprehension of the German Hyperinflation. Poland delivered very serious accusations to EU summit partners. “We now know what that is, an EU under the dictate from Berlin,” said Foreign Minister Witold Waszczykowski. They have made it clear that the fact that a large country such as Poland is ignored is a “very poisonous union”.

The choice of Tusk was not affected by the blockade of his home country, Poland. This is the first time that an EU Council President was elected against the will of his home government. Clearly, the EU is moving towards disintegration. If Poland exits the EU, then Tusk could not be President. The entire crisis is in fact that Merkel has far too much power. The entire refugee crisis is solely due to Merkel and was created for her personal standing in the press. There was no unified vote of all members. From this perspective, it has been a dictate from Berlin, but for Merkel’s personal career, not that of Germany.

The entire crisis with BREXIT has been up to Chancellor Merkel to make a reasonable compromise. But Merkel tried to put pressure on London and offered a technocrat deal for the benefit of the EU. This backfired and resulted in the British voting for BREXIT. Even now, the EU hands Britain a bill for dues of 50 billion euros. Britain’s Prime Minister Theresa May rejected EU demands for high payments after her EU exit from the EU. PM May stated bluntly: the popular vote on the BREXIT made it clear “that we will not pay huge sums of money to the European Union every year,” adding “And that will of course be the case when we leave the European Union.”

The EU is simply not going to end nicely. The EU should have remained as a simple trade deal like NAFTA. There was no plan for Washington to dictate laws in Mexico or Canada. The EU simply went way too far.

While Marine le Pen has reversed her position on introducing a new French franc saying she will set the rate at one-to-one to the euro and then allow it to float, whereas previously she said she would peg it to a basket of currencies. Meanwhile, we are looking at the collapse of the Fifth Republic formed by Charles de Gaulle. France is clearly on the brink of another political revolution. It has been astonishing to watch four career political candidates for the presidency be rejected by voters — two former presidents and two former prime ministers. François Fillon is on the ropes for political corruption. He tries to hold on for personal reasons rather than recognizing he is helping to destroy the Fifth Republic.

The French campaign is being usurped by all political outsiders with the Front National’s Marine Le Pen leading and a new youthful former banker, Emmanuel Macron who has been gathering support from the disintegrating political party system. Our model called for the collapse of the Socialists and indeed Hollande could not recover from the lowest poll rating perhaps in world history. The Socialists have instead chosen a very eccentric radical, Benoît Hamon, who champions the same nonsense. This seems to now be shaping up to be a classic battle between the more liberal Macron and the nationalist with Le Pen.

The Fifth Republic, France’s current republican system of government, was established by Charles de Gaulle under the Constitution of the Fifth Republic on October 4th, 1958 (1958.758).  Here too, there appears to be the risk of forming a new government (fall of the 5th Republic) by mid 2021.