Wed, Jun 08, 2005 - Page 9 News List

The problem with Europe

With the EU facing a profound crisis, it's time for honesty all around. Politicians have used Europe to their own ends, and its citizens have created false enemies and choices. Without change, the project is doomed

By Will Hutton  /  THE OBSERVER , London

-- 2006-2007 German and French economy move into deep recession as ECB puts up interest rates to save euro. Extremist left and right parties make big advances.

-- Summer 2007 Incoming left-wing French government under president Laurent Fabius suspends euro membership, raises tariffs and leaves WTO.

-- Spring 2008 German chancellor Angela Merkel declares EU dead. Germany will no longer recognize European law, but instead will work for a European common market with floating European exchange rates.

-- 2009 British unemployment tops 2 million. House prices crash. The far-right British National Party predicted to win 50 or more seats in 2010 general election.

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