With Spain next on the list of eurozone countries on the brink of financial abyss, nerves about the future of the great European experiment are at an all-time high. The narrative of the euro’s crisis seems self-fulfilling as markets move from one financially challenged euro country to the next, and after the Irish bailout, Portugal and Spain seem to be next in line, with cups in their hands and market speculators on their backs.
The collapse of the Spanish economy, with its overstretched banks, chronically high unemployment and a much larger economy than previous recipients of EU/IMF bailout money, is a particularly worrying prospect, yet European leaders seem committed to saving the euro. Even Britain’s George Osborne, the deeply euro-skeptic Chancellor of the Exchequer, acknowledged last week that despite not joining the euro (and still thinking it was a bad idea- “Hah, I told you so!”), it is in Britain’s interest to help with the bailout efforts and to ensure that neighboring countries like Ireland are repaired and revitalized.
With the air of crisis set to loom over Europe for months to come, EU leaders and Europhiles everywhere must be asking themselves: How do we get out of this mess (and how did we get into it in the first place)? Because as much as Americans or even the Brits might enjoy gloating in the face of this largely self-inflicted mess, the EU and its experiment with a common currency are here to stay.
For an excellent set of resources on this highly topical issue, check out our Euro keyword.