Euro Pricing In More Drama, Less About the Drachma

‘Grexit’, ‘Acropalypse’, ‘Geuro’, whatever silly name has been added to our lexicon still doesn’t describe what is really lurking in Europe. The fate of the European Union rests in the hands of those strong diplomats who still are winning against the rest of Europe.

France was reluctant to join the European Union and adopt the Euro due to national pride, if that sentiment becomes contagious—which it is among countries who feel they give up more than they gain—the fate of the EU will be a lot grimmer.

The Wall Street Journal notes the price of the Euro, which is staggeringly below a key level near 1.2575, is the direct result of market participants pricing in an inevitable exit by Greece from the Euro. Essentially Greek government printing presses are ready to re-circulate the Drachma, one of the oldest currencies in the world.

Yet the way the Euro is tanking, it most likely is pricing exits from other countries, including the PIIGS nations. Portugal, Ireland, Italy and Spain have all fallen short due to bad bonds and nearly all countries have the same problem that France has, which is an unwillingness to compromise itself for the rest of Europe. What this means is they may not want to fight to stay in the EU. If they feel they can heal their wounds and become stronger and more independent in the near future they will opt to stay out of the EU.

If the Euro can not muster up enough international cohesion like there is the United States, the entire European Union could fall by the wayside. Would the EU open itself up to the possibility of annexing countries that would gladly open their arms to the opportunity of joining the EU but for the most part have been denied?

For example, would champions of a beleaguered EU annex Turkey, a country that believes its sentiments are in line with that of modern Europe? Turkey can only be considered indo-European at best, annexing them would clearly be a compromise or else their acceptance would have been with open arms by now. Turkey would be able to aid the EU economically and militarily, yet they are the gateway to the Middle East.  That implies that just about any country could become a candidate for the EU so long as they have a strong enough economy.