Major insurers that specialise in providing cover against the effects of political unrest throughout Europe have seen a spike in the number of enquiries they receive. The Greek capital has already suffered deaths as a consequence of rioting.
Britain is regarded as high risk but not until the post election coalition honeymoon comes to an end. The UK’s deficit is similar to that of Greece, Ireland, Spain and Portugal. The only difference is that its economy is judged to be slightly less vulnerable than those of weaker smaller nations. This may be counter balanced by Britain’s multi-cultural fabric now fraying at the edges.
Specialists predict ‘intermittent protests over the summer against painful economic measures.’ The more pessimistic believe Europe could suffer a domino effect of social change on a scale similar to that which brought about the evaporation of Communism throughout Europe in 1989. Eurasia Group analyst Jon Levy thinks that whilst protest can be contained, disorder will attract media coverage, which will have an impact on the market.’
Disorder at Immense Cost
Certainly the expert has a vested interested in warning of disorder that brings with it immense cost, but history appears to be on his side. The effects of austerity are still cascading down and people can only live off their savings and assets for so long.
When these run low or become exhausted societies begin to disintegrate as they did in Germany prior to the National Socialist Government’s election in 1933. Hungary, which is not in the euro-zone but is an EU member, has seen its currency fall by 5.7 per-cent against the euro.
It is no coincidence that Hungary recently saw the parliamentary election of a number of Jobbik Party candidates; the party is a mirror image of Fascism. George Soros, the Hungarian-born financier says: “There is no question that the crisis has hit people unexpectedly. It gets them angry and they want to take it out on someone.”
Horrific Murders and Suicides
The effects of economic ruin on a personal scale are sometimes overlooked but these too can have an effect on society. In the UK there have been several high profile murders of a ghastly nature, each of which can be linked to economic hardship.
The most recent of these has been the horrific slaughter of twelve innocent people by crazed gunman Derrick Bird in Cumbria, England. Owing £60,000 (€72,500) to the Inland Revenue is thought to have unhinged him. The net was closing in on him; he feared public humiliation and gaol. The number of violent deaths and suicides due to economic hardship is rising fast throughout Europe.
Levy says: “The important thing is not how bad the violence and damage is as how much media attention is focused on it.” He pointed out that Greece’s woes made worldwide headlines for days. This has an unsettling effect.
Spain in the Crosshairs
Typical insurance cover sought by mainly international concerns is protection or compensation against expropriation, political or racial violence, and exchange controls effected by seismic shifts in currency valuations: This further weaken countries economies as loss of confidence sets in.
Protests in Ireland have been muted due to trade union heads who believe austerity is preferable to economic collapse. The test will be the Irish people’s tolerance of those measures. Greece again was a test bed for discontent. Economists will be paying attention to how far measures can be imposed before the barricades go up. In Britain the cuts will be the deepest since World War Two.
Italy is on the high risk riotometer with France not being too far behind. The country likely to be most harmed by violent unrest is thought to be Spain. There, the unemployment rate seems to be immovable at 20 per-cent.
Families in which not a single member is employed and earning are commonplace. The country’s credit worthiness was recently reduced to two stars. Spanish trade unions are reluctant to rock the boat as unrest would put at risk the socialist PSOE Government.
Related news articles:
Hungary, which is not in the euro-zone but is an EU member, has seen its currency fall by 5.7 per-cent against the euro.
It is no coincidence that Hungary recently saw the parliamentary election of a number of Jobbik Party candidates; the party is a mirror image of Fascism.
—–
What is this total and UTTER claptrap? Jobbik? Fascist??? Don’t make me laugh!
And if you knew anything about anything, then you’d know that the recent fall in the Forint has nothing to do with Jobbik, and everything to do with idiotic statements by senior members of the Fidesz government that have rattled the market.
http://esbalogh.typepad.com/hungarianspectrum/2010/06/blunder-after-blunder-the-latest-is-economic.html
Please do nopt call simple nationalists Fascists, unless providing, I don’t know what’s the word? Poof. That’s it. You know? E-vi-dence.