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Former U.S. Ambassador to the U.N. John Bolton thinks the attempts made to handle the European debt crisis don’t address the fact that the eurozone ...
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Voting against austerity joining me now former US ambassador to the UN John Bolton.
Mr.
ambassador.
Which is -- is it austerity really or is it let's try somebody you know.
Well I think -- elections we've seen to -- it is a protest against austerity I find it very hard to believe because.
It's delusional to think that -- governments and public sectors and major economies like France or even the peripheral economies like.
Greece and Spain and Italy.
Can can can continue the kind of fiscal policies they have but what we're seeing -- voting populations resist staying.
The restraints they need to have in place.
No sign that they really are seeking growth oriented policies they want more of the same larger public sector expenditures higher tax rates.
But not the kind of fiscal restraint on governments that Germany has insisted upon.
Well and that's.
Isn't that the problem from day one everybody said how can you glue all these different economies some wealthy some -- put them together.
And make a eurozone out of -- That's exactly right I have always believed that the entire concept of the common currency.
In the European Union was a political decision.
There are economic arguments for eliminating exchange rate death -- fluctuations and the like.
But basically it was intended to make Europe an alternative Poland world affairs to the United States.
And this inherent contradiction between having a currency without a country and having in this case seventeen countries with different fiscal policies.
Has finally come home to roost all of the so called fixes that they made over the past couple years.
Are just tactical.
Changes they do not address the basic underlying conceptual problem of the Euro itself.
-- -- -- who don't -- first.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Go back to their old currency and then the other side of the point is -- the Germans are on the opposite side -- that may -- the Germans will say let's get out of this.
Well you know I think we're gonna see a very different Euro -- here in the near future they simply cannot continue to keep doing these.
Minor changes in hoping they're gonna they're going to solve the problem because it's just not gonna work.
They really have only two alternatives one get some countries out of the Euro -- kick the Greece's.
Out on the one hand.
Or the more radical step that you suggest people are talking about more now maybe Germany just says you all fix the rest of the problem we're getting out.
Then the other alternative is to centralize more and more.
Fiscal power in the European Union government in Brussels.
It's gonna have to be one of those.
Sooner rather than later they simply cannot continue the path -- -- now.
You do you think there'll be.
Some of these countries would give up their sovereignty to the European Union centralized consolidated you groped.
I personally think that's unlikely except look what's happened in Greece and Italy over the past year they've had technocrat -- governments imposed on them from the outside.
Now the democratic alternative is this protest against austerity it really is irresponsible but what it shows.
Is the top European leaders at least Sarkozy before the French election and Angela Merkel of Germany.
Care more about preserving the Euro than they do about democracy in the peripheral countries I think that's.
Very troubling but they've they've succeeded in that so far.
If you were a betting man.
Would you bet that the European Union or the your rope will exist five years from now or three.
It's I think the European Union will because I do think there's benefit in -- free trade area but I think it's the most likely outcome is some countries get.
Kicked out of the Euro currency.
And the European Union looks more like a free trade zone and less like a super government that would be the way I would preferred ago so that's the way -- predicted should -- Well and that's actually the way they were going prior to putting together the -- they did have these they started working on let me trade.
Across borders here with common common technology common standards.
Right exactly free trade area it is very hard to argue against we benefit from.
America being a free trade area but what entered into the calculations going back several decades now.
Is the notion of creating a unified Europe is an alternative to the United States.
That was never in America's interest it was never in our interest to Foster that approach I think the Europeans are not now finding out that.
Not only the political but the economic cost of pursuing that alternative may be more than it's worth.
Well let's you bring me right to the the next section of the show ambassador John Bolton always good to get your viewpoint -- much.
Thank you so much to you about.
