Guardian: Reports the following on the expect clash between France and Germany should left wing Presidential Candidate Francois Hollande win the French Presidency, “ Hollande and his team are committed to not ratifying the EU pact unless it is fine-tuned to include growth-boosting policies. ”.
Lets Get Real:
At the end of the day folks, IF France says NO, it does not matter how many EU Countries pass the new EU Treaty it wont matter, without France its just a Germany wish list. The tough austerity packages followed in the EU has hit the brick wall of the welfare state, people are so used to the European Government being there, they have no memory of a world before the welfare state, they assume and demand that the welfare state should be there from birth to death. The problem is if EU Countries fold on austerity its does not solve the problem, small time political rest bite then the other shoe will drop. The Welfare State is killing the EU, it can be argued that it will be sooner not later that Markets will no longer buy EU bonds, as they will be worthless, think Weimar Germany. The Germans have a point, if you have to much debt you end up having to cut, you cant tax 100% or you get the 1970s back again, and that would be disaster. The Germans have to take the Steel fist out and tell France, if they break the new EU Treaty they are on their own, the EU wont bail them out, frighten the French, they do like to retreat.
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