Europe Sends out a Mayday after Brexit

July 15, 2016

Yes, the English outside of London and good parts of Wales voted in favor of a Brexit. In memoriam of the colonial trade economy and the former industrial power distribution, one asks only this question: What to do now?

Well, as always the answer is tricky, if not complex, when the European Union is at the focus. While Jammy Dimon, CEO of JPMorgan, is back to outrageous high payout of financial engineering, the City of London already bleeds out.

Therefore, the task for U.K. Prime Minister Theresa May could not be more historic, not more than the reinvention of the British economic model outside the financial sector lies on top of her to-do list. Meanwhile, she could lose Scotland and Ireland to the former friends in Brussels. She earns my respect for taking this job.

As one could see shortly after the referendum, men leading the “Leave” campaigns could not jump ship any faster. Again, my respect for this woman for becoming the second female prime minister after Margaret Thatcher.

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And what about the old elites’ steering euro and banking crisis? Since 2008, against all treaties and promises to Germany of Helmut Kohl and the Bundesbank, President of the European Central Bank Mario Draghi arranged more time for politicians who were unable to pass reforms for their people. Instead, Greece is still suffering, Hollande needs €10.000 monthly for all the bad news, Angela Merkel fears leading Europe because she has no vision to it, Jean-ClaudeJuncker slaps the heads of states while welcoming them, Matteo Renzi now starts looking at his banks and after a year Spain and Portugal — not France — face fiscal sanctions by the European Commission. Outside commentators like Christine Lagarde are not helpful either.

All those pensioners in power step back and leave today’s problems for the generation of tomorrow. They’ve proved how they are unable to solve problems and doing this brought Europe on a brink. Populists eviscerate on the cadaver. The only solution can be the withdrawal of central bankers to force politicians to reform. And yes, asking the people during this process is a noble necessity to raise legitimation!


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Stefan Hein is a politician and a member of the parliament of Germany. He shares his insights on politics and economy to those who are interested. He can be found on Twitter at @AfDPotsdam.

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