Could one bad apple bring down the European Union?
As the European Central Bank looks for all European governments to practice tight fiscal governance there is concern that one bad apple could bring down the whole European Union. Despite the fact that many people automatically assumed the worst of the credit crunch and worldwide recession was over, the collapse of the Greek economy has been an unwelcome reminder for the investment arena.
While the Greek issue finally appears to be under control we have similar concerns in Spain, Portugal, Ireland and even the UK. There are also a number of other European governments struggling to maintain public sector services amid growing concern about large budget deficits. Even if the vast majority of European Union members reduce their spending and tackle their budget deficits it may only take one "bad apple" to spoil the barrel.
We are seeing a perfect illustration of how the European Union can benefit from the combined power of members but we are also seeing how issues between a relatively small number of member states can also reduce this collective power. This is a very difficult and a very tricky period for the development and the future of the European Union. Can the European Union survive?
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