Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Friday Stock Market CRASH Following Israel Attack on Iranian Nuclear Facilities - 19th Apr 24
All Measures to Combat Global Warming Are Smoke and Mirrors! - 18th Apr 24
Cisco Then vs. Nvidia Now - 18th Apr 24
Is the Biden Administration Trying To Destroy the Dollar? - 18th Apr 24
S&P Stock Market Trend Forecast to Dec 2024 - 16th Apr 24
No Deposit Bonuses: Boost Your Finances - 16th Apr 24
Global Warming ClImate Change Mega Death Trend - 8th Apr 24
Gold Is Rallying Again, But Silver Could Get REALLY Interesting - 8th Apr 24
Media Elite Belittle Inflation Struggles of Ordinary Americans - 8th Apr 24
Profit from the Roaring AI 2020's Tech Stocks Economic Boom - 8th Apr 24
Stock Market Election Year Five Nights at Freddy's - 7th Apr 24
It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- 7th Apr 24
AI Revolution and NVDA: Why Tough Going May Be Ahead - 7th Apr 24
Hidden cost of US homeownership just saw its biggest spike in 5 years - 7th Apr 24
What Happens To Gold Price If The Fed Doesn’t Cut Rates? - 7th Apr 24
The Fed is becoming increasingly divided on interest rates - 7th Apr 24
The Evils of Paper Money Have no End - 7th Apr 24
Stock Market Presidential Election Cycle Seasonal Trend Analysis - 3rd Apr 24
Stock Market Presidential Election Cycle Seasonal Trend - 2nd Apr 24
Dow Stock Market Annual Percent Change Analysis 2024 - 2nd Apr 24
Bitcoin S&P Pattern - 31st Mar 24
S&P Stock Market Correlating Seasonal Swings - 31st Mar 24
S&P SEASONAL ANALYSIS - 31st Mar 24
Here's a Dirty Little Secret: Federal Reserve Monetary Policy Is Still Loose - 31st Mar 24
Tandem Chairman Paul Pester on Fintech, AI, and the Future of Banking in the UK - 31st Mar 24
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

European Union About to Collapse?

Politics / Euro-Zone Mar 29, 2009 - 09:02 PM GMT

By: Pravda

Politics Best Financial Markets Analysis ArticleThe resignation of the government of the Czech Republic has shocked the whole European Union because the nation currently presides over the organization. Nevertheless, the political changes in the chairing state are not going to be a disaster for the European Union. When Denmark was a chairing EU state in 1993, Social Democrat Paul Rasmussen replaced Conservative Prime Minister Paul Schluter and became the EU chairman. The political change did not have any influence on the work of the European Union. Another incident took place in 1996 in Italy, during the country's EU chairmanship too, and had no consequences either.


The European Commission and the European Parliament were aware of the probability for the Czech government to step down. Nevertheless, they risked to let the country take the chairing position. The Czech chairmanship expires in three months, but there are definitely no chances for the country to elect the new government during this period.

Czech President Vaclav Klaus could replace Prime Minister Mirek Topolanek as the head of the EU Council. Klaus has a successful experience of running radical reforms, when the Czech Republic made a step from socialism to capitalism during the 1990s. However, Klaus is the only EU leader, who refuses to ratify the Lisbon Treaty, which is supposed to replace the Constitution of the European Union. Klaus says that the Treaty infringes upon the sovereignty of the Czech Republic. The leaders of other European countries preferred not to entrust the EU chairmanship to such a skeptic politician. It just so happens that the EU has been left without the leader during the time of the world crisis.

Pravda.ru interviewed Alexander Rahr, a German scientist of politics, about the events taking place inside the European Union.

“Will the current power crisis in the Czech Republic affect the relations inside the EU?”

“It will, in the worst manner possible. The EU can lose the leader at a very bad moment. As it is known, the Czech Republic is supposed to chair the EU until the middle of the current year. The European Union has found itself in a very complicated situation. I mean the world financial crisis, which will probably be the most serious test that the EU has to take in its entire history.

“As a matter of fact, Europe's entire political system is tumbling down. Demonstrations and actions of protest take place in very other country of the Union. No one knows how the situation is going to unfold in the future. The situation with the Czech Republic is quite complicated indeed. A lot of time will be lost before a new person comes to power there.”

“How will these events affect the ratification of the Lisbon Treaty?”

“The state of affairs with the Lisbon Treaty is rather difficult too. It is not about the Czech Republic alone. Ireland will have to vote for the treaty again; Poland has not ratified the document either. It is not known what is going to happen to the treaty next, especially if financial institutes fail to handle the economic situation well.”

“Who is going to chair the EU during the upcoming three months?”

“For the time being, Topolanek will continue to chair the organization despite his resignation.”

“The Czech Republic has virtually failed its chairmanship at the EU. Would you say that the expansion of the European Union with the help of the former socialist states was hasteful?”

“This thought occurs to those who granted the EU membership to Poland and the Czech Republic. They do not say it out loud not to add more fuel to the fire. Maybe it was a premature decision to make, but what was Europe left to do? They would have been accepted sooner or later anyway, taking into consideration Russia's growing influence and the concerns of the West.

Sergei Balmasov
Vadim Trukhachev

Pravda.ru

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Pravda Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in