U.S. growth in the first quarter fell to 2.2 percent, a disappointment. But in Europe, that news would have caused general rejoicing. For consider the gathering crisis on the old continent.
With negative growth now for six months, Britain has fallen back into recession. “I don’t think we’re anywhere near halfway through the eurozone crisis,” said Prime Minister David Cameron this weekend.
Romania’s government fell last week. The Czech government barely survived a vote of no confidence. In the capital cities of both countries, tens of thousands have angrily protested the new austerity.
The Dutch government also fell last week, when the Freedom Party of right-wing populist Geert Wilders abandoned the governing coalition.
Wilders refuses to support spending cuts and new taxes needed to meet the hard deficit target of 3 percent of gross domestic product set by the European Union for 2013.
The Rome government of Silvio Berlusconi is history. New Prime Minister Mario Monti says Italy cannot sustain the austerity being imposed upon her.
In Spain, unemployment has hit 24.4 percent. Half her young are jobless. “Spain is undergoing a crisis of enormous proportions,” says Foreign Minister Jose Manuel Garcia-Margallo. He compares the EU to the Titanic.
French elections are Sunday. Most observers believe they will end the career of President Nicolas Sarkozy and install in the Elysee Palace a socialist, Francois Hollande, who has pledged to impose a 75 percent tax on incomes above 1 million euros.