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Collapse of EUROZONE - Free Lesson to EA Federation politics

Discussion in 'Jukwaa la Siasa' started by DoubleOSeven, Jul 14, 2011.

  1. D

    DoubleOSeven JF-Expert Member

    Jul 14, 2011
    Joined: Jul 5, 2008
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    This is happening in 2011:-

    Greece Cannot Be Saved: If Italy and Spain Follow, So Goes the Entire EU

    "If a reconstruction plan does not come soon, Europe's leaders will be charged with 'the decline of the West'". Sobering words from Gordon Brown, former Prime Minister of the United Kingdom published in an op-ed in the International Tribune this week.

    As worries over Greece continue to grip the market, the instability of Italy and Spain's sovereign debt has become a major concern as well.
    "It's now necessary for those trying to manage the sovereign crisis to give certainty, to define with clarity the political objectives, the scope of the instruments and the amount of resources available," incoming ECB President Mario Draghi said Wednesday in a speech in Rome, Bloomberg reports. "It's a necessary step to ensure the stability of the euro area and its currency."

    At times like this, the debate almost always shifts to whether the European Union can sustain itself over the long-term.

    ... While the marriage between Tanganyika and Zanzibar is shakier that ever, bigger dreams include political federation of the whole of EAC. Up North, Sudan just went into two pieces and there is plenty of grounds for that. South Sudan might become a newer member of EAC soon and at a time when there is plenty of talk about MONETARY union. Phew!

    My take: Member states have to build strong economies their own countries first and let results been seen. Talk about monetary union ought to be secondary to that if at all necessary.

    What is happening in EU, the model, ought to send alarm to EAC monetary union ambitions
  2. MWEEN

    MWEEN JF-Expert Member

    Jul 14, 2011
    Joined: Feb 6, 2010
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    I am not an economist and my kindergarten "Macroeconomic theories and practise" does not allow me to analyse the situation either. However, the panic that has gripped financial institutions in Europe is a wake-up call to our decision makers to re-look into the ambitious plan for monetary union in the East African Block.

    I remember Europe had a very stringent entry criteria for the Euro, but it seems some members massaged their economic figures to cheat their way into the Eurozone. As the swahili say goes "Mfichaficha maradhi, kilio kitamuumbua". The faults can no longer be hidden away. First it was Greece, then Ireland, Portugal and Spain. The introduction of Italy (widely thought to be World's 8th largest economy) has shaken the hell out of the financial institutions (Specifically because the bail-out package for Greece was partle financed from private sources, AND, there are strong indications that it is going to default on the debt!!!!!!)

    Who are we in the EAC???? Think twice.