Sunday, March 01, 2009

Merkel Undermining EU?

There may be many reasons, some valid too, why German Chancellor Merkel said NO to European wide super bailout fund. However, no matter what; this ‘no’ fundamentally ‘undermines’ EU and the entire EU project. What good a political institution is if it does not solve people’s problems in times of need? Chancellor Merkel wants IMF to take the lead in addressing financial aid for Central and Eastern European countries rather than a European solution. Even if it were to work, why countries in Europe or World would then bother to consider EU? People will go to IMF to solve their problems. What is the use of EU?

Worst fears of American Conservatives are turning out to be true – EU project is fundamentally flawed and has much less ‘juice’ left to unfold any further.

French President Sarkozy started the raucous by raising the prospect of protectionism. It is not clear how any number of EU gatherings is essentially going to address that; no matter how many ‘smiling’ photos of European leaders are released.

All in all EU problem does not seem to have been solved and we can expect potentially one more shock to the world financial market due to such indecision. Collectively, there seems to be a race among EU leaders to keep on shrinking Europe’s political weight on global stage. Today is one more addition to such European shrinkage.

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