It’s all over but the post mortems. Eurocrats demanded their pound of flesh. Cypriot officials surrendered.
They sold out their people. They deserve better. Expect greater than ever hard times. Expect growing poverty, unemployment and despair. Expect public anger. At issue is whether it’ll bubble up and explode.
Zero Hedge headlined “Next Up For Cyprus: Depression.” It forecasts real GDP declining over 20% by 2017. “Risks are clearly on the downside.” Ahead expect more bailout help needed.
With tongue in cheek perhaps, European Commission economic chief Olli Rehn said “It’s clear the depth of the financial crisis in Cyprus means the near future will be very difficult for the country and its people.”
He omitted saying Cyprus’ trouble is protracted. Ordinary people will suffer most. Responsible solutions weren’t chosen.
They’d have softened crisis conditions if implemented. They’d have hastened recovery. They’d have mitigated pain and suffering. Bailing out bankers matters most.
“Congratulations Cyprus.” Sacrificing sovereign rights benefits German Chancellor Angela Merkel. Her September reelection chances improved.
Der Spiegal commentator Armin Mahler headlined “Euro Bailouts: Savers Be Warned – Your Money’s Not Safe.”
Germans are worried for good reason. Banker bailouts harm their security. “At times like these, the only thing that is certain is that nothing is certain.”
So, there’s nothing to worry about. Mr Barroso told us last week, ‘I think I can say that the existential threat against the euro has essentially been overcome – nothing to see here, move along, crisis over.’
Well, Mr Draghi and Angela Merkel may well have committed the German taxpayer to unlimited sums of money in order to prop up the eurozone. And certainly ahead of the German elections there perhaps isn’t much else she could have done. And I do accept that the pressure from the markets, Mr Barroso, has eased for now.
And from your perspective and everybody’s perspective, I suppose, the champagne is still flowing, the chauffeur-driven cars are shiny, the salaries and of course the expenses are attractive, so everything is rosy in the EU garden.
But I don’t think we should be kidding anybody, Mr Barroso, because the fundamentals haven’t changed. In fact things deteriorated in 2012 substantially.
Unemployment has soared, particularly in the Mediterranean countries, with youth unemployment now up to 58% in two of those countries.
Disillusionment with the European project has brought more support in Britain for the UK Independence Party, which believes only pulling out of the EU will do. What’s more, recent polls show over half of Britons agree. RT talks to party leader and Euro MP Nigel Farage.
European Parliament, Strasbourg, 20 November 2012. Speaker: Nigel Farage MEP, Leader of the UK Independence Party (UKIP), Co-President of the ‘Europe of Freedom and Democracy’ (EFD) Group in the European Parliament - http://nigelfaragemep.co.uk
Nigel Farage is a UK politician with a strong US following. He has seen his own party, UKIP, grow from a fringe faction to a viable mainstream alternative. By turning his European Parliamentary position into a bully pulpit for a growing movement of euro-skeptics, he has managed to ride an alternative political wave sweeping across the Atlantic. And many of his speeches before the EU have gone viral on the internet, particularly on the financial blogosphere in the United States, making the man and his United Kingdom Independence Party a force to be reckoned with.
Nigel Farage joins us in studio to discuss all this, as well as what happens behind the scenes of Europe’s Parliament and give us a sneak peak at his relationship with other MEPs behind the new iron curtain!