Up until merely a few years ago, the faintest hint of a break-up of the Eurozone was practically a taboo topic in Europe. So unthinkable it was that leaders say there was no " Plan B" in place in case of such a break-up as reported by ZeroHedge. Today, it's a different ballgame altogether as German Vice Chancellor Sigmar Gabriel says his country's insistence on austerity in the euro zone has left Europe more divided than ever. So much so that even the eventual break-up of the European Union is no longer unthinkable.
Gabriel is pinning the blame or probable accountability on a prospective EU break-up to strenuous efforts by countries like France and Italy to reduce their fiscal deficits and this push naturally results to some serious political risks.
Gabriel shared that he, in fact, once asked Germany's Chancellor Angela Merkel what she thinks would be more costly for Germany: for France to be allowed to have half a percentage point more deficit, or for the leader of the far-right National Front Marine Le Pen to become President. Gabriel said that to this day, Merkel has yet to respond to the question and challenge he posed.
Gabriel's Social Democrats (SPD) are junior partner to Merkel' conservatives in her ruling grand coalition and they favor a greater focus on investment, in contrast to Merkel's conservatives who put more emphasis on fiscal discipline as a better foundation for economic prosperity.
The SPD is poised to select Gabriel to run against Merkel for chancellor in the highly-anticipated September federal election as confirmed by senior party sources. Gabriel serves as the long-standing chairman of SPD and economy minister.
Der Spiegel magazine asked Gabriel in an interview if he believed he could win more votes by moving more German money to other EU countries, Gabriel said he is aware that such discussion is extremely unpopular.
No matter how scary or undesirable the prospect is, with the current state of the EU, there may be no escaping the unthinkable reality that it may indeed break apart. The scenario would surely make German's younger and future generations- their children and grandchildren- to curse today's leaders, because Gabriel said the truth is Germany is the biggest beneficiary of the European community, both on the economic and political fronts.