What’s wrong with Europe
and how to fix it?

Valdas Samonis

Lithuania will hold the Presidency of the Council of the European Union in the second half of 2013, starting from the 1st of July. VilNews has on this background asked readers to annotate and analyze factors that have to do with Europe, the EU, the euro and Lithuania. This is one of the posts we have received. An article by Valdas Samonis, PhD, CPC The Web Professor of Global Management(SM)

Cutting through the EU bureaucratic gobbledygook
Part 2

The more I am into my research on my forthcoming book
"INSIDER CRONY SOCIALISM", the more I see the parallels
between the Gorbachev's USSR and Barroso's EU!

Collapsing EUSSR under Reformer Barrosov?
Pray that God gives more wisdom to European Leaders!

I have to admit it.

The more I am into my research on my forthcoming book "INSIDER CRONY SOCIALISM", the more I see the parallels between the Gorbachev's USSR and Barroso's EU!

According to the numbers circulating in the European financial press, the EU outstanding debt is some euro 40 trillion!

The practically only EU paymaster's (Germany') GDP is some euro 2,5 trillion. I will not insult your intelligence; just compare the two!

For the first time in human history, the picture is further dangerously complicated by some one thousand trillion in toxic derivatives sloshing around the global economy. It is like financial AIDS and no bank will tell you that!

In terms of financial intermediation, Europe relies on banks much more than any other major region of the world economy.

On June 26, the EU agreed to a couple of years of reforms towards the European Banking Union (EBU), a very complex bank supervision, etc, arrangement that leaves some countries out, some in, to different and obfuscated extents, etc.

Coming to the Gorby/USSR parallel, when the central planning from Moscow (sorry: Frankfurt/Brussels!) doesn't work, the solution proposed by the planners is more centralized planning rather than letting nations or EU sub-regions to find their own workable solutions.

Germans are wise as usual; they exempted the great majority of their banks (that serve the German economy) from the EBU and will regulate them from Berlin, not Frankfurt (ECB)! Voila!

If I were a young European, I would buy my transatlantic ticket today; one way!

Pray that God gives more wisdom to European Leaders; as the Lithuanian Bishops suggests when the LT Presidency of the EU starts on July 01, 2013.