Can’t happen! Won’t happen! Guess what? In the past several months, I’ve had the opportunity to meet with a number of senior European officials and broach this very scenario. Their responses floored me. They accepted the premise of my discussion and accepted the idea of a centrally-governed Europe. Experts in the U.S. readily admit that, in order to survive in the foreseeable future, the Eurozone needs a more centralized financial structure, something that will help rebuild confidence throughout Europe’s economic system.
Obviously, German leaders will have something to say about this, but they are being put in a political box. Do the German people and their northern neighbors, who have been prudent and frugal in their spending and live under a more responsible system of government, bail out their southern neighbors who have not? Or do they allow them to fail and start over?
Their predicament reminds me of the fairy tale about the three little pigs. If Germany is the little pig that built its home of bricks, does it save the other the little pigs that built their houses of sticks and straw from the big, bad wolf that is economic collapse? Or, does the industrious little pig tell the others to go home, get busy building their own homes of bricks, and suffer the consequences in the mean time? Oh, if this were only a fairy tale.
Luetkemeyer is a member of the House Financial Services Committee and the subcommittees on Financial Institutions & Consumer Credit and Domestic Monetary Policy & Technology.