16
Dec

By this time next year, the eurozone could be defunct. Despite the small chances of it actually happening, the fact that the collapse of the currency union is even possible speaks volumes about the size of the problems Europe faces. Since financial, economic and political crises descended on the Continent almost a decade ago, Europe has endured many difficult moments. But 2017 will be the most important year yet for the continuity of the eurozone as political and economic risk reaches the bloc’s very core in Germany, France and Italy.

Threats to the European Union and the eurozone become more acute as they spread to the bloc’s key members. While Europe’s supranational structures could probably survive Greece’s departure from the eurozone or Britain’s exit from the European Union, for example, they probably couldn’t overcome the withdrawal of Germany, France or Italy. These countries not only have the largest economies in Europe, but they are also the main forces driving the process of European integration.

Next year, a series of events will put the European Union’s foundational structures to the test. The bloc’s most serious challenges will come from France and Italy, which are dogged by low economic growth rates and relatively high unemployment. Anti-globalization sentiments are strong among large swaths of their populations, who want to protect their economies from the perceived threats of immigration and free trade. Meanwhile, many French and Italian voters are skeptical of the European Union and the mainstream political parties that back it. Both countries are fertile ground for political forces that vow to fight globalization and reverse the process of European integration. Read more…

By Adriano Bosoni
December 15, 2016; http://www.realclearworld.com/

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