Testing Times: Collapse of European Industry Worse than Expected

An onslaught of bad news continues to hit Europe, with protests about economic troubles on the rise. Some European leaders, like French President Nicolas Sarkozy, resort to nationalist and protectionist approaches. Meanwhile, the European Union’s current president, Czech Republic Prime Minister Mirek Topolanek, stresses the need for “adherence to the rules,”including continued trade among the EU member nations. The EU will have to convince all members of the need for the economy to continue functioning as “a single internal market.” Even economists cannot predict all consequences and costs of untangling and disrupting a highly integrated market, and an attitude of “every country for itself” could rapidly transform into “every man for himself,” with dangerous consequences for civil society. – YaleGlobal