IF 200 -- August 29, 2011 -- 12/20

Moreover, the EU has no provisions for monetary divorce!    During the decades leading to the EU and the single currency launch, the possibility was not even remotely contemplated of a member state willing to exit the single currency system.    As a consequence, no institutional and legal framework is available to allow a member state to quit the currency union.

Recently, the EURO has come under ferocious attacks in global financial markets as the European financial, economic and sovereign debt crises moved to a new level.    The cruel reality is that “debtor” nations are lending to “borrower” nations!    Furthermore, the European Union and the Central Bank, even with the benevolent help of the International Monetary Fund, could fail in their efforts to contain the crises.

European politics are in great turmoil nowadays.    At stake are not only the very survival of the EURO and the EUROZONE, but also which country within the EUROPEAN UNION is truly able to take the EU’s leadership to the next level.    Emerging trends point to Germany using its economic power to reshape EU’s institutions to its own liking, while France leads the Continent on foreign and military affairs.