Stephen Ilagan's Blog

The catastrophe that is unfolding in the Euro Zone is one for the history books. Europe’s future, both politically and financially, has literally been hanging in the balance in the past few weeks. Here is my two cents on what is happening on the EU and what could possibly be done to save Europe:

The way I see it, the structure of the EU is the major problem. This “crisis” has shown just how slowly a united front of democratic nations moves into action. Here in Canada, we always complain about the government being slow to react to public demands. Compound that with 27 governments and you have a recipe for disaster. True, when at it’s peak, the EU has the capability to compete economically with global powerhouses like China and the US. However, at its worst, unnecessary expenditure falls heavy on countries like Germany, one of the few economically “stable” countries.

At his point, the only solution I see is letting the ECB take control and pull Greece out of debt. The EU cannot risk a Greek default, since that would result in an incomprehensible amount of investor confidence lost in the EU. Then, begin slowly contracting the EU to avoid such disaster in the future.