The ongoing sovereign debt crises in the eurozone will have several important political and geopolitical consequences, as I explain in a feature in Business Monitor Online this week.
- Europe faces its biggest crisis since Yugoslavia’s collapse.
- Europe seldom has the unity and purpose to tackle major crises.
- The eurozone was probably too big to begin with.
- The debt crises raise the question of the need for ‘fiscal federalism’.
- Germany’s importance has been augmented by the crisis.
- As bad as the Greek crisis is, it would pale in comparison to a Spanish or Italian debt crisis.
- Fear of failure will prompt European policymakers to take all possible measures to preserve the eurozone.
- A weakening Europe could allow Russia – and possibly China – to expand their influence.
- Greece could see an increase in political extremism.
- Greek unrest will not necessarily be replicated in other fiscally challenged countries.
- The Greek crisis has ramifications for South-East European security.
- Future currency unions could be put off by the eurozone crisis.
- Europe’s overall global influence will wane.
Also in our online service today, we discuss rising overheating risks for Turkey’s economy, and analyse the ‘Arab Spring’ six months on – where we’ve come from, where we are, and where we are going.