If you thought the EU crisis was under control, think again. Out of sight, out of mind may be true, and reporting on the crisis in recent days has been almost non existent. However today July 24, 2012, there is more bad news for Europe.
Generally the German economy has been admired as strong and invincible. Now it seems that even the "powerhouse of Germany" maybe be under threat. Credit agency Moody's has been quick to consider down rating Germany. If Germany's triple A rating is cut it will be disastrous for Germany and the EU.
With country's such as Spain still needing more bail outs the EU will look to Germany for a lead and for money. This time its looks may be in vain.
Today July 24, 2012, the Troika, that is the European Commission, The European Central Bank, and the International Monetary Fund are set to assess whether or not Greece has done enough to receive the next installment of its bail out. There are reports that the Greek government will ask for more time to enforce the austerity package demanded from the EU. Having imlemented many cuts already they still have quite a way to go.
If the next installment of the bail out is not forthcoming expect the worst to happen. Greece will be in an untenable position in the Eurozone and left with few alternatives.
The only sensible out come still appears to be an exit from the Eurozone for countries such as Greece and maybe even Spain. Perhaps the best option would be the dissolution of the Eurozone and the EU dream. After all it became a nightmare long ago. One that people desperately need to wake up from.
Eileen Kersey manages TEK Staff Blog