With what looks like an ever growing storm gathering above the European economy more and more people are asking how are we to get out of this.
Governments cast around for growth stratagems as more and more disappointing data comes in telling us that projected growth will have to be scaled back yet again.
Do we go for ‘austerity’ or ‘spend to invest’ now and hope in the future?
And while countries such as Greece teeter on the brink the other nations and banks that are irrevocably chained to them fearfully watch developments.
But the chains are not just tied to the Eurozone countries, globalisation has seen to that. Every economy in the world will go down if the Eurozone collapses.
Reading between the lines it seems that the politicians now believe that there is only one way out. Full EU integration into one federal state, as has been the long term aim anyway. But to bring this about would require the acquiescence of the people. How to achieve this is the problem the politicians need to overcome.
Over at theeconomiccollapseblog they think they have the answer. That the inevitable economic collapse will have the people of Europe clamouring for integration as it will be perceived as the only way of returning to ‘normaility’.
The blog has put together 20 quotes from EU politicians, which they say shows that it is generally understood in the top echelons of the Eurozone that ‘…the euro is in danger of not surviving and that the EU does not work in its present form’. That is to say that full integration is the only way to make it work so solving the financial crisis.
#1 Polish finance minister Jacek Rostowski: "European elites, including German elites, must decide if they want the euro to survive – even at a high price – or not. If not, we should prepare for a controlled dismantling of the currency zone."
#2 Stephane Deo, Paul Donovan, and Larry Hatheway of Swiss banking giant UBS: "Under the current structure and with the current membership, the euro does not work. Either the current structure will have to change, or the current membership will have to change."
#3 EU President Herman Van Rompuy: "The euro has never had the infrastructure that it requires."
#4 German President Christian Wulff: "I regard the huge buy-up of bonds of individual states by the ECB as legally and politically questionable. Article 123 of the Treaty on the EU’s workings prohibits the ECB from directly purchasing debt instruments, in order to safeguard the central bank’s independence."
#5 Deutsche Bank CEO Josef Ackerman: "It is an open secret that numerous European banks would not survive having to revalue sovereign debt held on the banking book at market levels."
#6 ECB President Jean-Claude Trichet: "We are experiencing very demanding times."
#7 International Monetary Fund Managing Director Christine Lagarde: "Developments this summer have indicated we are in a dangerous new phase." (http://www.cnbc.com/id/44299015/)
#8 Prince Hermann Otto zu Solms-Hohensolms-Lich, the Bundestag's Deputy President: "We must consider whether it would not be better for the currency union and for Greece itself to go for debt restructuring and an exit from the euro."
#9 Alastair Newton, a strategist for Nomura Securities in London: "We believe that we are just about to enter a critical period for the eurozone and that the threat of some sort of break-up between now and year-end is greater than it has been at any time since the start of the crisis."
#10 Former German Chancellor Gerhard Schroeder: "The current crisis makes it relentlessly clear that we cannot have a common currency zone without a common fiscal, economic and social policy."
#11 Bank of England Governor Mervyn King: "Dealing with a banking crisis was difficult enough, but at least there were public-sector balance sheets on to which the problems could be moved. Once you move into sovereign debt, there is no answer; there's no backstop."
#12 George Soros: "We are on the verge of an economic collapse which starts, let's say, in Greece. The financial system remains extremely vulnerable."
#13 German Chancellor Angela Merkel: "The current crisis facing the euro is the biggest test Europe has faced for decades, even since the Treaty of Rome was signed in 1957."
#14 Stephane Deo, Paul Donovan, and Larry Hatheway of Swiss banking giant UBS: "Member states would be economically better off if they had never joined. European monetary union was generally mis-sold to the population of the Europe."
#15 Professor Giacomo Vaciago of Milan's Catholic University: "It's clear that the euro has virtually failed over the last ten years, even if you are not supposed to say that."
#16 EU President Herman Van Rompuy: "We’re in a survival crisis. We all have to work together in order to survive with the euro zone, because if we don’t survive with the euro zone we will not survive with the European Union."
#17 German Chancellor Angela Merkel: "If the euro fails, then Europe fails."
#18 Deutsche Bank CEO Josef Ackerman: "All this reminds one of the autumn of 2008."
#19 International Monetary Fund Managing Director Christine Lagarde: "There has been a clear crisis of confidence that has seriously aggravated the situation. Measures need to be taken to ensure that this vicious circle is broken."
#20 German Chancellor Angela Merkel: "The euro is in danger … If we don't deal with this danger, then the consequences for us in Europe are incalculable."
Whether you believe that this has been engineered or not, when disaster strikes people will get onto the nearest available life raft, and if that life raft is full European integration then so be it.