Risks and riots - the European disaster zone

2 September 2012 The European disaster zone.  In Europe, despite Mario Draghi’s plan that effectively calmed  the markets , the brutal reality of the European Crisis is starkly apparent in Greece, where the population is suffering severe and prolonged economic hardships not seen since Germany in the 1930s. In such situations the risks of riots and revolts becomes very high, and indeed the recent riots in Greece suggest that they will only become worse with time as desperation becomes more widespread.

No doubt the Spanish will be next on this path to riots and revolt. In situations when there is less to go round the energy of fracture prevails as the larger affiliations are abandoned in favour of smaller more adaptable social structures. It is within this context that the region of Catalonia is pushing increasingly more determinedly towards independence from Spain, citing the examples of Andorra and Monaco. Whilst Catalonia seeks separation from Spain, it is but a fractal of other energy within Europe working against the political desire for the unification of Europe.

On the one side stand the politicians, isolated from reality and following a political dogma that few are courageous enough to abandon, and, on the other side, the population of Europe with its firsthand experience of the failed economics of the EU and the resultant negative real growth. It is just a matter of time before the people force the politicians of Europe to abandon their path, a process that will be led initially by the poorer countries within the system, and then, once a two tier Europe has been created, the same process will take place in the northern countries as they have no one else to blame for the negative real growth and turn inwards upon their own politicians.

The madness of the European unification process has been demonstrated on a smaller fractal, by the potential BAE/EADS merger proposals. Why would a British political leader ever entertain losing BAE Systems to European control? To summarise, BAE Systems is half the size of EADS and makes the same profit, which suggests that it is a much better company. But most importantly, it is in effect the industrial side of Britain's military complex, and has very special ties to America in terms of the production of weapons and the sharing of technology not for sharing with other European nations. Not only will BAE be subsumed by its bigger but less effective rival, but Britain will lose control of its defence industry to the Paris and Berlin veto.