Do we have a stake in what is happening in Europe? Some countries, particularly in southern Europe are having trouble paying their debts in a recession. It shouldn’t be a surprise – taxes shrink in a recession. Of course in some places it is pathological – Greeks refuse to pay the taxes they owe in such large numbers that they are bankrupting their country. But the problem is wider, with deep roots in the recession.
As a result other countries have been reconsidering their participation in the Euro and even in the European Union itself. Should we care? Read the rest of this entry »