Europe’s Strategic Future: Implications Of The Eurozone Crisis

It is possible that future geopolitical engagements could create a forcing action for internal EU processes to be modified to facilitate the emergency creation of hard and soft power, sometimes outside the scope of the accepted practices of legal, economic, and constitutional changes in the Union. Third, as a political project, the European Unions future would be assured if the political will behind its continuous existence remains in place . This will has been challenged by increasingly nation-centric views by different members, the anti-European sentiments in certain European constituencies, and the perceived weight of problems associated with membership in the eurozone and the European Union, respectively. A key factor that would determine the continued political support for the European Union would be the state of the Unions economy. The economic problems facing todays Europe are unlikely to disappear over the short- to medium- term. In effect, the same political will that sustains the Union is also behind the preservation of the single European currency. In that light, although the political commitments behind the eurozone are being subjected to increasing internal political pressure within the major EU economies, in particular Germany, the interests vested in maintaining the euro remain strong. There are no indications that the political will behind these commitments has waned, and it may not dissipate as long as the eurozone and the European Union serve the political purpose of maintaining a politically stable Europe. The question is whether the European Union can bear the economic cost of such political stability. This cost is directly linked to the social practices and approaches that are actually maintaining the political stability of Europe, ranging from the extensive social safety nets that are ultimately maintained through Union membership, to the manner by which the imperative of economic productivity is subjected to social concerns. These principles are both laudable and well-meaning, but when looked at from the cold-hearted perspective of economic growth, they generate problems. As demonstrated by the travails of the eurozone economies since 2008, the efforts to maintain the socio-economic arrangements prevalent in European economies have led to sluggish growth, unemployment, and even measures that run counter to the implicit and explicit guarantees that states have made to their populations, as was the case in Cyprus in 2013, for example. Of particular significance for European and, ultimately, global economic security, is the fact that the political nature of the European project often does not favor straightforward economic solutions or unified policy decisions. Indeed, the political aspects appear to have increasingly trumped the economic ones.

As global concerns grow, the head of the International Monetary Fund, Christine Lagarde, said the situation was “very, very concerning” and warned that “creative accounting” was not the solution. Senator. Bob Corker, R-Tenn., told CNBC that a debt deal was still “very possible” following the talk between Reid and McConnell. “I’ve had some good conversations early this morning. It is between Mitch and Harry. And I think people want to see that come to fruition,” said Corker, who is a member of the Senate Banking Committee. President Barack Obama and Vice President Joe Biden are scheduled to meet Congressional leaders at 8 p.m. London time. In European news, the Eurogroup of finance ministers from the euro zone countries met on Monday to discuss, among other topics, Greece and banking supervision. In Ireland, the government is preparing to soften its line on austerity for Tuesday’s 2014 budget proposals, despite warnings that it would be better to stick to its targets. Taoiseach (Prime Minister) Enda Kenny triumphantly declared an end to the “era of the bailout” on Saturday. He said Ireland would become the first euro zone country to exit its bailout, and it may even do so without a financing backstop from the rest of Europe. (Read More: Ireland risks long-term pain for short-term gain ) Meanwhile, the Ernst and Young ITEM Club said in a new report on Monday that the U.K. government’s “Help to Buy” mortgage guarantee scheme would lead to a rapid improvement in prospects for the housing market, and added that fears of a housing bubble were unfounded.

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