The election of France’s socialist government will doom the EU. Why should Germany foot the bill for the largesse of the communists and socialists in Europe? Spain today asked to recapitalize it’s banks. Does anyone think that Greece isn’t going to need money? Just because an election gave everyone a sigh of relief doesn’t mean they are actually going to reform anything. They want to go slower. How about Italy? Portugal? Any better off?
Now with France electing to join the stupidity, the Euro is doomed.
The French are going to make it extremely hard to fire anyone. The are going to increase the costs. What does that mean? It means no one will get hired. French GDP is going to take a nose dive. Established companies are heading for the exits to go to lower tax countries. England is a beneficiary of the French stupidity.
However, even entrepreneurs are leaving. Typically taxes don’t affect start ups since they don’t make any money. However, regulation does, and the new French regulations penalize all business severely.
If I am the Germans I feel like the weightlifter on the bench press that just had a couple of manhole covers added to the bar. How can you have a European Union, when only one country in Europe is productive? Socialism is like that. They direct and regulate, you produce.
California, Illinois, New York, Rhode Island are the PIIGS equivalent in the United States. Obama and his administration epitomize the EU socialists in the US. As the world macro economy takes another downturn, it will be interesting to see how they weather the storm.
Thanks for the link Instapundit.
Thanks for the link Ace of Spades
thanks for the link Doug Ross.