Rapid European deflation

Leave it to the French to be the first outspoken pessimists. The rapid expansion ideology that has guided the European Union for the past half-decade seems to be coming to an end. This time they tried to do a little too much a little too quickly, and it looks like the price is being paid.

The near-doubling of countries in the EU last year was believed to be the grand sign of something big to come for regionalism. The high hopes of the EU were transferred to ASEAN countries and the Pan-African Congress broke ground on new administrative and parliamentary buildings. I think these new ripples will be felt at equally far distances.

With the all-or-nothing ratification of the EU constitution, France's decision (and now the Netherlands as well) all but kill that chapter of EU history. Now Germany is talking about pulling out of the Euro, France's unemployment is hovering at 10%, and the Euro falls every time another blow is dealt to the constitution (good thing I kept some of my money in the States, bad that I left so much in Germany). Things are looking pretty dire. An opposition leader in the Netherlands pointed out that, while 2/3 of parliament supported the constitution, 2/3 of the population opposed it. The future of Europe could become a campaign issue as never before.

Schroeder is in trouble, and Chirac is finding it necessary to restructure his government as well. We'll leave the Dutch be, they just wanted to protect their soft drugs and gay marriage.

Blame Canada.

Flown by mariposa at 12:52 PM on June 03, 2005

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