"If your opponent is of choleric temperament, seek to irritate him." - Sun Tzu
Then, factor in that certain groups (unions etc) in a nation can become very skilled at politics while demanding still more social benefits. Politicians, eager to win the support of the group in question, find it easy to meet their demands because actually paying the benefits is the problem of the "next generation".
Here in the US, we have several entitlement states (California, Illinois, New Jersey etc) that are facing fiscal collapse because the social benefits bills are coming due and they are out of cash.
Likewise, our Social Security system is not fiscally sustainable, and has not been so for quite some time. But.... needed reforms are not made because the Democratic party wants the support of current beneficiaries, so fiscal reality is ignored and more promises which cannot be kept are made.
Last edited by Cryptic; 10-17-14 at 04:25 PM.
So to summarize then, removing such nation made promises/entitlements to benefits may liberate the countries in EU of unnecessary expenses. The money then could go to serve the EU interests without being wasted to such entitlements.
Japan has such problems too, right?
In regards to Japan, I dont know if they are facing a severe entitlement budget crunch or not. They definelty have the declining birth rate problem. On the other hand, they might structure their entitlement payments differently than western nations.
From what I have read, the nations facing the biggest entitlement crunches are those that have combined generous social programs, have allowed "special interests" to demand still more benefits, and have a tradition of "fraud, waste and abuse". Thus, Greece has collapsed and Italy and Spain are very near collapse.
Ireland may well be in serious trouble. I believe that even France was at one time, was rushing towards a collapse simply due to their extremely large entitlement pay outs. Sarkozy, however, might have started enough reforms to bring them back from the edge.
Some etitlement nations seem to be doing relatively better: Germany with it's extreme efficiency- (they are Germans after all) and they are a leader in hi technology manufacturing. Norway has a very small population and alot of oil.
Even still, I think that nearly all EU entitlement nations face fiscal collapse sooner or later. An exception maybe oil rich Norway.
Last edited by Cryptic; 10-18-14 at 08:54 AM.