Europe is the world's biggest economy. It is threatened,
however, by bank and government debt defaults. It is growing old
and has far more social spending obligations than it can afford.
And, if Europe goes into a deep or prolonged economic slump, the
rest of the world follows because Europe is a big market, not only
for Asia but also for America.
After a marathon meeting that started on December 8, 2011, the
European Union (EU) member states agreed to create an
intergovernmental treaty to forge stricter budgetary controls.
Britain has opted to remain out of the treaty. Markets were up the
following day. Before the meeting, so we are told, Europeans were
in disarray. But the day after, apparently, they have got things
all sorted out – again.
