Advancing a Free Society

Europe on the brink–and something to be thankful for

Tuesday, November 22, 2011

Signs are gathering that the European Union's most recent bail out has not stemmed the rising tide of concern in markets about Europe's fundamental financial or political solvency.

Britain's government barely prevented a rebellion by conservatives against their own Prime Minister forcing a national referendum on whether to remain in the European Union, and Britain isn't even principally exposed to the default risk because it does not participate in the common currency. Still, the Business Secretary is planning for "armageddon" of the euro's collapse.

Spain voted out its socialist government over the weekend, bringing in an opposition that ran on a "not the people who got you into this mess" platform but refused to commit itself to a program for reducing Spain's 40 percent unemployment rate for those under 25. Yields on Spanish bonds rose on the election results, suggesting a lack of confidence the new government will continue the draconian austerity measures that got its predecessor voted out.

Continue reading Kori Schake…