The European Union (EU) has always been a complex structure, but now it is becoming more so. Economic activity varies widely from country to country. For example, the more established economies of Germany, France and Italy are the strongest at this moment with the economies that were part of the Soviet Union, such as Romania, Hungary and the Czech Republic are much weaker. The EU discussed this matter recently and agreed to help Eastern European countries on a country by country basis.
Against this backdrop European leaders met to reaffirm their commitment to a unified Europe. They rejected protectionism and agreed to coordinate policies. Nevertheless, there is a growing tension between Eastern and Western European nations.
Meanwhile, the Association of South East Asian Nations (ASEAN) held a summit in Thailand. They too endorsed fiscal stimulus, monetary easing, access to credit, and trade financing. ASEAN is trying to form a trading bloc similar to that of the EU. Again, while there is talk of unity, countries like South Korea are facing exceptionally difficult times. South Korean exports have fallen 17.1% from a year earlier and could fall to 30% from last year.
Against this background, some experts are predicting a prolonged recession of two to three years.
Do you believe the recession will end this year?
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Reader Comments (Page 1 of 1)
3-03-2009 @ 10:31AM
Kent said...
It's highly unlikely an ASEA bloc will take hold particularly when major economic members have or seek preferential trade agreements with the U.S. On the face of it, it's a pipe-dream.
3-25-2009 @ 9:36PM
Luke said...
Kent, that the ASEA block will come about is as inevitable as the dawn, just as the North American Union is coming about: through the back door, in secret and undemocratically. These things may make no sense on the face of it, but those with the real power are hellbent on it. This is exactly what the Trilateral Commission was set up to establish.