FINANCIAL CRISIS,THE GOLDEN OPPORTUNITY FOR THE UNITED STATES OF EUROPE BY NICK ALEXANDROPOULOS

“It’s not only the federalists who want more integration,it is  also the markets.They are sending a clear message every day,so , it is not an idea or utopia, it’s a matter of realism.” JOSE MANUEL BARROSO                                         “The day ,when the states of europe would unite together as one nation is very near.United in union, not unity in diversity. MY OPINION                                The financial eurozone crisis that has swept across europe,is due to a lack of economic governace.Seventeen different economies and fiscal policies cannot function together in a long period.Its is very obvious that  the eurozone can’t have a common monetary zone without effective economic fiscal and social policies.Some economists  compare a country(Greece) with the fall of Lehman Brothers(a company),but, i don’t think the eurozone crisis is a  direct consequence of the crash of 2008.The world economy is sick and rapidly approaching a financial meltdown.European union  is on the verge of collapse and the member states  should move forward with a political and economic agenda.                                                                                                                          The eurozone  needs a single government to protect itself from economic woes.The markets insist for the creation  of a federal europe, the ultimate solution of  the ongoinig   crisis,otherwise,  we  must go back to the national  currencies. Historically, deeper integration has always followed  a period of crisis.                                                                                                                                                    In the past ten years european union’s competitiveness with China,Usa and other economic players has constantly decreased.My personal thought  is,crisis is not over  and  europe is heading  for a  gigantic  crisis(we didn’t see anything,yet),due to the upcoming spanish and italian crisis.That will  have  a significant impact   in the world economies,mostly in the United states of America as the US economy continues to decline.It’s been estimated ,that it would  take a total of  three trillion euros  to bail out  the euro-troubled states.Well, do we have the money? The answer is obvious not and   we will endup rushing in a political union to avoid the collapse.                                            The gold opportunity is here,right now,   which  leads to a federal europe  and all political   leaders  know is unstoppable.                                                                              Instead of  mentioning   academic  theories , i would like to  take a look  of the financial real world.The economies of  southern europe (greece,italy,portugal,cyprus and spain), are getting  more economically uncompetitive relatively to Germany.In order to grow , germany  has to give some stimulus money(based on the reforms), plus, to  allow a loosery monetary policy.The labor cost is already been reduced , no further  cuts will be essential.Germany ,also, has to oversee the whole process and to get rid  of the  ghosts of the past(inflation-maniac).The problem is very complicated ,as german taxpayers(and other europeans), are not in  favor of the idea.                The best solution  to reduce and then  eliminate  a dept problem,logically, is the fast growth of the economy.Priority should be in the areas of direct  and productive investments.                                                                                                             The political process for the european unity-under the severe pressure of the financial markets -has to start as soon as possible,to be able to hold the financial system together  and to avoid  the european union tragedy.                    A new federal europe that speaks with one voice, acting as a whole not by each  state  individually,adopting a common harmonized labour law with focus  in productivity and industru’s competitiveness ,a, direct elected parliament(with president) as long as the fiscal union, is the ultimate   solution, building a federation, a superstate or even a new empire, if you like.    The old fashion model  of the traditional  european sovereing nation state economy is  over. The new era requires  a concept of a supranational economy .                                                                                                                                            The  United states of europe(currently,EU), has  a gold opportunity, never seeing before.The  european continent from a diverse and disparate  continent  to the economically  integrated european  union of todays. The final  step(political union) is next.Out of the current european union crisis ,the new federal europe will  soon emerge, the new  economic and  military powerhouse that will rule the world in the years to come,for the glory of the UNITED STATES OF  EUROPE.          NICK ALEXANDROPOULOS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

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