Sunday, 11 December 2011

The EU and UK at a cross roads?

With some concern we observe our prime minister setting Britain on a path potentially divergent to our best interests. A strong voice in Europe.

However, even if the UK currently enjoyed a proper socialist leader. Our PM would face a Thatcherish Chancellor Merkel who only has bitter medicine to offer Europe.

The currently leadership of the €zone, the French-Germany axis seems to have no faith in the viability of the zone economy, otherwise would they not get the ECB to intervene in the market? Surely the market price of Italian bond yields is excessive? This must be the case because despite a superior budget and trade balanced compared to the UK, Italy suffers much higher debt costs.

Italy's budget deficit is about 5%, UK is about 10%

The EU leadership currently seeks to outlaw Keynsian responses to the crisis which limits them.

This is a P&O multimodal map of trade routes.

Europe deniers often talk up the success of Switzerland, but its fairly obvious that Italy, one of Europes trillion € economy's has to drive much of its trade via Switzerland.

Switzerland's geography creates a immense strategic height that the EU has to give special treatment to.

In contrast no special consideration needs to be given to the United Kingdom, our ports are more exclusive for UK use.

So far the EU has felt it best to give Switzerland what it wants with regards to trade rights for the disruption the Swiss could cause if they wanted to. What to the anti Europe nut parade imagine Britain would do to retain trade rights? Block the gibralta passage? make the europeans pay a toll for passing freight through the English channel and the north sea?

Our foreign policy is being lead by deluded tories. What we need is a visionary leader of the left in the UK who can speak sensibly on the direction the EU should take. It has now gone into the fantasy land of Thatcher's economics of misery and anti-keynsian fiscal defeatism. We British have experienced the absolute horror of Thatcher's reign of terror. We can see it clearly that Merkel threatens to inflict the same sort of victorian medicine on the scale of the content. Not just 50 million Britons to suffer under the yoke of such fiscal fascism, but under the french-german pact, the thatcher like medicine will be force fed to have a billion europeans.

If the UK is now effectively adrift of the EU, perhaps there is some silver lining? we can begin to plan on how to defy this neoliberal entity? Become a most strident social democracy and try to win the argument in europe from our newfound success on a new leftward path?

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