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Gardiner: EU Crisis Still Dire

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    Nile Gardiner of the Heritage Foundation on Europe's economic crisis.

  • Duration 3:34
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It -- while without any major protests lately the eurozone has been drifting off the front page but.

Doesn't mean the region's economic situation has gotten any bad up at my next guest says it -- just a matter of time before it while self important.

Now Nile -- director of the Margaret Thatcher center for freedom of The Heritage Foundation.

Nile thank you so much for being here.

-- white America.

The ECB.

Last year essentially said look we'll do whatever it takes and -- put -- also cheap money out there for banks to enjoy the biggest problem was at its William Spain.

Think big economies will really struggling wouldn't be able to pay their bills -- in -- run out of cash it seems is so.

That's off the table is that right.

I have to say that the the situation -- of the -- remains very -- line.

Even day be yours and prices -- dominating headlines in the United States is as a -- on -- occasions ahead of the presidential election of the long term prognosis for the the Euro zone for the European Union as a whole.

Is extremely.

Grin I even need a French labor administer this week declared the fox was bankrupt and his -- Spain the situation is extremely.

-- of unemployment of 26%.

Youth unemployment now 55%.

In Spain.

Debt rapidly rising in the country.

Fragile economic growth and Spain -- across much of the all of the Euro zone.

-- forget has said British prime minister David Cameron said last week in a speech in London.

That's.

Europe is responsible for 50% all the world's social.

Spending yeah sort of entitlement spending -- on on a global scale that.

Not yet it only accounts for 25% will GDP.

And has 7% to all of the of the world's population say so that gives you an idea of the scale of the -- my hands -- Europe.

And -- let you you believe that's just not sustainable what do you think will be the trigger and how soon will happy -- you mentioned the UK there is a child -- -- -- UK's.

Membership and in the Euro.

Could be put up for referendum put up for a vote which in turn could mean they could pull out of Europe could that be the catalyst for this.

Alliance essentially to fall -- -- Well David Cameron that did last week pledge.

A UK referendum on membership in the European Union to be held in 27 team provided of course the conservatives win an outright majority in the -- fifteen.

General election that of course is a big if but I I would expect to see over the next tool for years.

Potentially a number old men Basel the Euro zone peeling away from it in particular.

I think that's -- Greece Portugal Spain passed its me.

-- you'll fall away from the -- and I think the the current situation with regard to Spain for example music completely unsustainable -- -- -- -- -- survive I think in the Euro.

As is -- -- calls that you said it really is a straight jacket which makes it extremely difficult act before.

Individual Europe you're saying.

Nation states to the -- their own economic future -- -- rule.

The Euro is a huge.

Straitjacket.

And it -- all kinds all restrictions upon national solvency.

-- rule interest rates set by central bank and Frankfurt.

-- so individual European governments have very little control of their own.

External and destiny and in many respects well that's a pretty grim outlook but you could well be right -- governor thank you so much for joining us really appreciate it.

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