The Blame Game

The scenario

The year is 2030 and the European Union is only a shadow of its glorious past. Looking back just over 20 years, it is clear that the financial crisis which hit the world in 2008 had its most profound effect on Europe.

By the middle of 2009, the countries in the EU had realized that the only way to stop a complete financial meltdown was to pump in billions of Euros into both the financial and real economies. It had become necessary for the government to save drowning companies by injecting huge amounts of capital in return for large stakes of the company. The idea at this early stage was that the government would sell back their equity as the market started to recover and the companies paid off their loans. However, no one at that stage realized that the worst was yet to come.

In 2010, after showing some early signs of recovery the economy took a nose dive again in what was described by many economists as the Double Dip. The billions of euros which had been pumped into the economy showed no signs of being recovered and the strain was beginning to show on the balance sheets of the all the major economies of the Union. Under pressure from their citizens the governments of the richer nations such as Germany & France, started to pull back their investments from other countries such as Eastern Europe, Asia & Africa. After all, each country had its own problems to cope with. There was a growing sense of gloom and despair as unemployment continued to rise to unimaginable levels throughout Europe.

The EU was also unable to sustain subsidising the lesser developed member states. This caused wide spent resentments among member nations. With rising unemployment levels and falling standards of living, member nations turned their focus inward and adopted more socialistic practices.

People started re-looking at their identity. Till that time they believed in a unified EU, but as the EU was not able to keep the ship afloat, richer members considered the option of being the first to part ways so that they could be able to serve their people better.

That was the beginning of the desintegration.