The Europeans are meeting again, and unfortunately all signs point to a continuing and tragic lack of leadership on the part of the whole continent. It would appear that the following factors are not sufficient to inspire appropriate action:
Greece will run out of money mid-November If there is no adjustment of its debt by then it will default with unpredictable consequences. Another bailout will simply add to the total stock of debt and lead to an even worse situation in the future.
Ultra-right and left-wing movements and political parties are springing up in many European countries. Is anyone paying attention to the parallels with 1930's Europe?
The United Kingdom is threatening to exit the Union unless contributions by donor countries are at least frozen, and preferably reduced At this same time the European parliament is threatening to veto the EU budget unless there is at least a six percent increase in social expenditures How do they propose to square THAT circle?
Previous columns have analyzed the situation and proposed solutions The European governments continue to refuse to recognize the true nature of the crisis and therefore cannot, repeat cannot, put into place meaningful and ultimately successful solutions. It is, literally, like a Greek tragedy. Sophocles and Euripides would have understood immediately.
Israel should act on the assumption that the European market for its goods and services will continue to decline, perhaps precipitously.
Next week an analysis of the results of the American election and what it means for the region and for Israel.
Norman A. Bailey, Ph.D., is Adjunct Professor of Economic Statecraft at The Institute of World Politics, Washington, DC, and a lecturer at The Israeli National Defense College (MABAL), 2011-2012 session.
Published by Globes [online], Israel business news - www.globes-online.com - on November 7, 2012
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