European solidarity failed in the 1930s, just as international cooperation failed. You might think that this is not a big deal, but in fact solidarity was replaced by hate, and cooperation by war. There was no middle way – appeasement failed.
I think it is time for European politicians to reflect on their policies. Spain and Greece are going through depressions, with no policy tools available: no monetary policy, no fiscal policy. They are not allowed to renegotiate their debt burdens, neither those of government nor those of the private sector. The current policy of kicking the can down the road by bailing out banks and speaking of solidarity is clearly not a policy to address the problems. Rather, the financial symptoms of the real problems are addressed. If mainstream politics does not address the problems of the real world, extremist views will take over.
Read it at EconoBlog101
by Dirk Ehnts
Unfortunately, populist parties are often extremist, lead by a charismatic figure with whom the common people identify.