With Euro Crisis Deepening, EU Presses on with Economic Integration

(PROUT Globe, June 27, 2012) – The battle to rescue the Euro is intensifying. With Cyprus being the latest member country to request a bailout, central EU forces now suggest increased economic centralization of the Eurozone.

The new plans involve a common finance department with powers to overrule national budgets. EU Commission President J.M. Barroso calls the new initiative a “defining moment for European integration.”

In addition to overruling national budgets, the proposal includes limits to how much debt one country may take on, and common policies for labor markets and taxation.

One reason why measures are now being introduced to streamline a European economy is a new study carried out by the German weekly magazine Der Spiegel that projects unemployment to raise 8-15 percent throughout the Eurozone should the common currency collapse.

According to PROUT, economic centralization is not the way to go. Instead the EU should mobilize its present political power to secure economic localism. Economic democracy is the solution where people’s welfare is the goal, not political democracy that supports unbridled capitalism.

Economic liberalism in the form of the four EU freedoms – free flow of capital, labor, goods and services – will not produce stability and lasting peace in Europe. Increased support for capitalism will only result in further centralization of wealth, further erosion of social welfare, growing political instability, and subsequent growth of political extremism.

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