This story is gaining significant traction recently. I commented on this just two weeks ago, with a Pew Research poll documenting the loss of faith of many Europeans in the project that is Europe.
Now there is concern among the European political elite regarding the impact that continued high youth unemployment will have on this centralizing scheme (emphasis added):
Francois Hollande, the French president, warned on Tuesday that failure to offer these people hope risks destroying the EU altogether. “We must act urgently. Six million youths are out of work in Europe,” he said.
“Unemployment is reaching unsupportable levels in a number of countries. Imagine all the hatred, the anger. We’re talking about a complete breakdown of belief in Europe. What’s really at stake here is that citizens are turning their backs on the European project,” he said.
I maintain it will not come to this. Default on sovereign debt will be the answer, if it is all that is left between the people and their faith in regulatory democracy.
French statesman Jacques Attali told the Elysee forum that EU leaders are running out of time. “If I was 20 years old today, I would face a choice between exile and revolution,” he said.
Neither answer is a good answer for the elite. These possibilities come with the risk of loss of control. The elite, above all else, value control. Control is best exercised through regulatory democracy.
There will be sovereign defaults in order to save the primary tool of control.