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After Brexit
The Real Contours of the European Mess
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  • Nevis07

    It’s odd that this story has been so lost even in the context of the shadow of Brexit. If anything it should be highlighted. Italy’s debt to GDP at 132% is dangerously high (especially given it’s external debt and lack of monetary control). Their bank’s are estimated to have non-performing loans equal up to 12% of the entire country’s GDP and if estimated as a mark-to-market NPL’s are anywhere from 20%-50%.

    The euro is slowly suffocating Italy and that is leading to a potential political crisis for Europe. Given that this has been a slow moving disaster in the making for some years now, one has to wonder exactly what Merkel’s game plan has been. The only thing I can come up with is that she’s hoping to have her fully fledged superstate with fiscal and transfer union (to say nothing of an EU army), before this particular crisis comes to a head. But time is running short on that strategy. Elsewhere in Europe, Spain is looking to become a political liability for the EU as well. So despite all of the rancor and post-vote regret over Brexit, I think the Brits may still have been lucky to get out when they did.

  • Fat_Man

    The Brits are smart. They have decided to get out of town before the gas works explodes.

    The Germans are pissed, they will have to pay more of the costs when the gas works explode.

    The next shoe to drop will be another pay in country jumping ship, before another one of the PIGS explodes.

    It is a vicious circle all the way down.

    • f1b0nacc1

      Worse for the Germans, they own the gas works.

      • Ray Zacek

        “Germans” and “gas works” in the same sentence: that’s rather chilling.

        • f1b0nacc1

          Point well taken…my intention was NOT to link them

    • Icepilot

      Nope. The Germans got rid of that icky nuclear power & will blossom on the wings of solar & wind power! Especially offshore wind power – otherwise known as investing hundreds of millions of Euros in an infrastructure trying to gather widely distributed, low density energy, in a very severe environment, requiring astronomically expensive maintenance, while chopping up seabirds for unreliable, intermittent power.

      The Brits are smart.

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