With Greece at risk of a military coupe, the EuroZone is in flames
Recent weeks have seen a series of very disturbing elections across Europe.
In Russia, Putin is President for a further six years and his third term in office. His election was disturbing because it included some blatant ballot rigging and followed a shuffle that allowed Putin to become Prime Minister after his second term as President, clearing the way for him to shuffle back into the Presidency. He has promised to introduce pro-Russia policies, which appears to mean that he intends to strengthen the hold of former KGB mafia and rig the constitution to keep him in power indefinitely.
In Germany, Merkel has begun to suffer reverses that could see her being replaced by a Socialist administration that believes in tax and spend policies.
In Greece the elections have resulted in a situation where a government can only be formed by including extremists from right or left. It looks increasingly likely that a new General Election will have to be called and that means a lack of government for a critical period during which further bailout funds will be suspended and Greece will run out of money. This makes it increasingly probable that Greece will exit the Euro, possibly within two months.
In France, the new President is a largely unknown figure who has not even held Ministerial office before. He may become a pragmatic President but that seems highly unlikely. His public statements all follow extreme socialist dogma of high tax and public spending which is what got the EuroZone into such a mess in the first place.
Perhaps the most disturbing elections were the British local government elections where less than a third of electors even bothered to turn out and vote. Labour secured more seats but only because the vote in many areas for Conservative and LibDem candidates collapsed. The party that secured the only strong increase in support was the UK Independence Party but the voting system prevented them from turning the significant increase in votes into new seats.
The results have two very unfortunate consequences.
Firstly, democracy is still in retreat. Unless voters turn out and cast their votes, failing old Parties, controlled by unaccountable ruling elites, will benefit by default.
Secondly, the EuroZone is now moving rapidly towards total failure. In the longer term, this may be a great advantage for the global economy, but the short term consequences may prove very painful.