Zonng Out

"Europe is facing a profound economic and political crisis." --Olafur Ragnar Grimmsson, President of Iceland, interview with France24 news, 3/9/2013

The United Kingdom may be heading for a triple-dip recession. -- BBC News, 3/13/2013

 As time goes by, there are increasing signs that, despite soaring stock indexes, the world economy may not be responding. Several members of the European Union are already in deep fiscal waters and in danger of going under, and the EU Parliament itself may have to cut its budget by 3.3 percent, since it cannot, by EU rules, operate at a deficit. National governments can, but the cries for austerity are gaining in volume.
   Meanwhile, the budget deficit in France remains high, and at least three EU members -- Greece, Ireland and Portugal -- can no longer hit the international financial markets for money and are trying to rely on its EU partners. And the Bundesbank, Germany's central bank, is setting aside billions of euros to cover "risky" moves by the European Central Bank, at the same time lashing out at France for goofing its reform efforts.
   The eurozone crisis is not over, the Bundesbank chief told Reuters news service. "The reform course in France seems to have floundered, in Italy it has been brought into question by the elections, and in Cyprus, the situation is especially unclear," according to Jens Weidmann, the head of Germany's central bank.
   All of which raises the question of why any nation should retain its membership in the EU. Already, Greenland has dropped out, and Iceland's president says that nation will not join.