Monday, May 28, 2012 – by Staff Report

The future of the European Union ... The choice: A limited version of federalism is a less miserable solution than the break-up of the euro In recent months we have concluded that, whether or not Greece stays in the euro, a rescue demands more. If it is to banish the spectre of a full break-up, the euro zone must draw on its joint resources by collectively standing behind its big banks and by issuing Eurobonds to share the burden of its debt. We set out the scheme's nuts and bolts below. It is unashamedly technocratic and limited, designed not to create the full superstate that critics (and we) fear. But it is plainly a move towards federalism—something that troubles many Europeans. It is a gamble, but time is running short. Rumours of bank runs around Europe's periphery have put savers and investors on alert (see article). The euro zone needs a plan. – The Economist

Dominant Social Theme: A little bit of federalism is preferable to none.

Free-Market Analysis: Europe is discovering federalism. As we've long argued on these pages now, the "crisis" of Europe stands revealed increasingly as a phony one, a ginned-up ongoing emergency that is designed to provoke maximum centralization.

Full article:

http://thedailybell.com/3933/Economist-Mag-Cook-the-European-Union-...