It's very simple. The US has NAFTA with cheap resources from Canada and low labor from Mexico. China has an inhouse cheap market although how long that will last remains to be seen. Europe also needs a cheap labor market : the answer is the European South (which includes Ireland).
The so called PIGS together, once properly marinated, will indeed provide the cheap labor that the north is looking for. Because of low demographics, one country can't fulfill this cheap labor role; but the Balkans combined with Italy, Spain and Ireland are more than enough to provide the North with its required low cost labor. The big experiment is of course Greece but once that proves workable, the IMF etc... German pushed formula will be copied to the PIG countries.
The South differs from the North both nationally, culturally and racially since the North is comprised primarily by Germanic and Germanic related nations while the South is composed of Non Germanic and non Germanic related nations; nations which include Latins, Celts, Greeks, and the other Balkan powder lot.
If things go as planned, the Eurozone North will have its free lunch since it will get access to once expensive beach side real estate at a bargain price; not a bad way to come out of a crisis in addition to charging negative interest on ones bonds.
The Southern politicians seem to support this strategy...for now. It remains to be seen for how long the Southern peoples will accept to pay debts that there governments incurred and are now obliged to pass on to the populace.
Natural resources still remain a problem for Europe.
The so called PIGS together, once properly marinated, will indeed provide the cheap labor that the north is looking for. Because of low demographics, one country can't fulfill this cheap labor role; but the Balkans combined with Italy, Spain and Ireland are more than enough to provide the North with its required low cost labor. The big experiment is of course Greece but once that proves workable, the IMF etc... German pushed formula will be copied to the PIG countries.
The South differs from the North both nationally, culturally and racially since the North is comprised primarily by Germanic and Germanic related nations while the South is composed of Non Germanic and non Germanic related nations; nations which include Latins, Celts, Greeks, and the other Balkan powder lot.
If things go as planned, the Eurozone North will have its free lunch since it will get access to once expensive beach side real estate at a bargain price; not a bad way to come out of a crisis in addition to charging negative interest on ones bonds.
The Southern politicians seem to support this strategy...for now. It remains to be seen for how long the Southern peoples will accept to pay debts that there governments incurred and are now obliged to pass on to the populace.
Natural resources still remain a problem for Europe.
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