The European Union - the Eurozone in particular - has now come to a head.

The partying, high-spending, careless spend-now-pay-later that followed the launch of the Euro in many of its member countries - generously stoked by creditors eager for self-profit - is now an image of the past. The very recent past that is.


The buzzwords of the day are cuts, cuts, cuts.
On paper so far, because the real thing is yet to be achieved.
Then come deficits, responsibility and waste.


Suddenly many realised entire nations were spending far more than they could ever afford.
The implicit nexus spender-borrower/financier-creditor broken up by the latter given how insatiable and unsustainable the former became.
How quickly times and moods change dictated by nameless forces pulling the strings behind flashy computer screens displaying charts and trendlines.
The masses will be called upon to come out and flood the streets. Clenched fists punching the air, banners unfurled and high-pitched voices screaming protest against sitting governments.


Some of the blame lies squarely with the system, the awesome market-economy system. An economic system all but hijacked by unscrupulous bankers and financiers who happily gambled and fooled around with the savings of millions over a lengthy period.
The balance, however, lies fully with numbed governments that chose to look the other way while themselves carelessly indulging in fanciful spending. Mostly to answer the calls of the day from lobbies closely associated with it.


Chronically deficit economies/countries in the Eurozone should first ask themselves whether or not fiscal discipline is relevant as a matter of good governance.
True there was the American born and bred financial storm that gutted Europe like a fire consumes a thick wooded forest.
It explains part of the problem. It does not explain the whole problem. Not even the main part.


Germany's stance is vindicated not merely because it is Europe's biggest economy and Angela Merkel played it hard and tough all along.
It is mainly a confirmation that governments must act responsibly full time.
Managing their countries within the means generated by respective economies.
Imbalances that are structural in nature have to be addressed wisely over many years, not hideously seeking to wish them away by throwing borrowed money aimlessly into non-productive projects.

There would be much more to write about.
Words, however, have hollowed themselves out.
The time now is for restrictive action by governments that wilfully ran out of options.