Is the EU falling apart?
The last few years have seen a massive increase in the number of EU members with the likes of Poland, Hungary, Romania and the Czech Republic part of a raft of new entrants to the union. However, the ongoing worldwide recession has not only exposed many of these fairly immature markets to the rigours of the euro but is seems as though a number of comments from politicians in these countries appear to have inadvertently increased investor concern.
The EU Parliament has today called for restraint in the release of potentially damaging comments and assessments within the EU as a means of trying to steady the foreign exchange markets. The European Central bank has for some time been the mouthpiece of the European Union but conflicting comments from various member states have confused and in many cases exacerbated the problem.
As many of the new crop of entrants to the EU continue to struggle there are serious concerns that more established members such as the UK, France and Germany will be forced to fund substantial bailouts at a time when their own national debt has moved out of control. A number of observers have been fairly critical of the rapid growth in the EU which many believe could prove very costly to all the EU members in the short to medium term.
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