Greece crisis could set back European Union expansion

[myp]

With the economic crisis in Greece, the EU is expected to be more wary about expansion moving forward. Nothing official has been said yet, but most now agree that Estonia will be the only country to join the EU within the next five years. With people in eastern Europe already showing wariness towards joining the union before this crisis, they are also more likely to take a closer look from their standpoint.

New article on the issue here: http://www.reuters.com/article/ousivMolt/idUSTRE6183J920100209

Thoughts?

 

[Dirk]

The US wants the EU to accept as many new poor members as possible. This is in order to weaken the EU as an economic power - it's a major economic power and the US wants to dilute it. Consider the trade wars, for example.

 

[myp]

The US wants the EU to accept as many new poor members as possible. This is in order to weaken the EU as an economic power - it's a major economic power and the US wants to dilute it. Consider the trade wars, for example.

That is really another topic though, this is relating to what the EU is going to do. The way I see it, either way this system does not work- as we are clearly seeing with Greece and not to far behind that point Spain and Portugal as well. I honestly think it is in the best interest of eastern Europe to not join the EU as it is bound to face long term problems.

It is also important to note that many of those who believe in free markets and capitalism actually saw this coming- with the analytical focus on Spain, but the big-time EU supporters ignored it.

 

[Dirk]

To be fair, Greece has been teetering on the edge of civil war for much of the second half of 2009. People marching the streets, tear gas, riot police, the army, molotov cocktails flying, cars exploding, shops half-destroyed, Nazis attacking immigrants, anarchists fighting Nazis, ordinary people fighting Nazis in fact, raging battles with the police, casualties on all sides, (more) deaths at the hands of police and soldiers...

Should the EU expand? From the perspective of the economy, certainly not!

Though i will note that the EU economy is largely defined by Germany, France and Britain. Germany and France are out of recession, Britain "officially" is - it'll take a while to recover and there's every chance for a double dip there.

 

[myp]

To be fair, Greece has been teetering on the edge of civil war for much of the second half of 2009. People marching the streets, tear gas, riot police, the army, molotov cocktails flying, cars exploding, shops half-destroyed, Nazis attacking immigrants, anarchists fighting Nazis, ordinary people fighting Nazis in fact, raging battles with the police, casualties on all sides, (more) deaths at the hands of police and soldiers...

True, but the non-defense/riot-control government spending certainly plays a major role in it as well.

Should the EU expand? From the perspective of the economy, certainly not!

I agree. What perspective is it good for then, in your opinion, as I really see very little benefit (other than sticking it to America by having a more united Europe?)

Though i will note that the EU economy is largely defined by Germany, France and Britain. Germany and France are out of recession, Britain "officially" is - it'll take a while to recover and there's every chance for a double dip there.

Over the long term, I am quite bearish on the EU as a whole, whether it be the big players or the little ones.

 

[Dirk]

True, but the non-defense/riot-control government spending certainly plays a major role in it as well.

Yah. And i reckon it also discouraged people from doing business thee, i'm betting.

I agree. What perspective is it good for then, in your opinion, as I really see very little benefit (other than sticking it to America by having a more united Europe?)

The perspective of obtaining cheap foreign labour.

 

[deanhills]

I honestly think it is in the best interest of eastern Europe to not join the EU as it is bound to face long term problems.

I doubt problems will be limited to the countries of eastern Europe. They obviously will be the first ones to experience problems, but if they continue this road, Germany may end up as the only country able to meet the monetary standards of the EU.