The growing speculation that Spain is about to ask for EU assistance to bail out its banks, coupled with news that German banks are being flooded with cash from Spanish and other Eurozone investors, shows there is an imminent danger of an economic tsunami about to sweep over the European Union that could wash the Euro away sooner rather than later.

Workers Party President Michael Finnegan said that the signs of a massive economic meltdown were ominous but that EU leaders and economists were reacting like rabbits stuck in the glare of an oncoming truck.

“I would compare this to the wash that one sees when a tsunami is about to hit - the tide goes out rapidly to far beyond its natural limit, then comes crashing in at a terrifying pace, sweeping all before it away.  Except this is a reverse tsunami - the German banks are awash with cash right now but if Spain's banking system collapses you will have a run on the German banks and the entire Eurozone will feel the tsunami, except the flood will not return to normal levels but instead fill the vaults of Swiss and American banks with European taxpayer's money”, said Mr. Finnegan.

“Germany is in no position to feel smug about the current situation.  This is not, as Chancellor Angela Merkel would put it, a crisis of poorer states threatening the stability of the Eurozone.  Capitalism itself is in turmoil and is unable to react to the crisis in any other way but to move money about like the deckchairs of the Titanic. The banking system merely reflects this inbuilt capitalist contradiction.   The inherent contradictions of capitalism, as Karl Marx predicted 150 years ago, are becoming more and more obvious and the edifice is cracking and beginning to crumble.  No amount of plaster, or platitudes from politicians, will save it and increasing austerity will only make the impact of the tsunami on the people of Europe more devastating.”

Issued 8th June 2012