Pat Buchanan

Cameron may seem isolated, but he speaks for tens of millions outside Britain -- Italians, Greeks and others fed up with the imposed austerity, North Europeans fed up with having to bail out Club Med deadbeats who do not work as hard or as long.

Nationalism is on the boil across Europe, and it is impossible to believe the leaders of those 26 EU countries, by cutting some deal with Angela Merkel and Nicolas Sarkozy, can bind their countrymen forever to cede veto power over their future budgets to Brussels.

Will Greeks and Italians really accept a decade of austerity to pay off debts larger than the national economy, to banks and bondholders, for hundreds of billion of euros already spent?

Were Italy and Greece U.S. citizens rather than EU countries, both would long ago have declared bankruptcy, been forced to pay what they could, then been released from remaining obligations, while their creditors would have been forced to swallow their losses.

Moreover, there are pragmatic reasons for rejecting the German plan. Europe appears headed for stagnation or recession. Yet under the fiscal union scheme, virtually all eurozone nations would have to raise value-added and income taxes to balance budgets where the domestic welfare states consume almost all of the national economy.

Does raising taxes make sense in a recession? Would it not risk deepening the recession, raising debt-to-GDP ratios, forcing interest rates to rise to attract investors to new national bonds as old bonds came due?

All of this raises the larger question. Can the eurozone survive? And if it cannot, can the EU?

Given the hostile attitude of Greeks, Italians and many others to years of austerity to pay back debts, given the growing reluctance of the European Central Bank, Germany and Northern Europe to bailing out deadbeats, given the lack of resources available, are not defaults in the eurozone almost inevitable?

And if that happens, given the size of the debts, the result would be like the collapse of Lehman Brothers raised to the third power.

Trillions of euros of debt that appear today as assets on the balance sheets of giant banks and within the portfolios of millions of investors would vanish overnight.

Like the "fire bell in the night" Thomas Jefferson heard in 1820, a harbinger of civil war, Cameron's declaration that European fiscal and political union goes forward, only without Britain, may be a harbinger of the breakup that is coming.

And if the eurozone collapses, and the EU follows, what, then, is Europe -- other than a geographic expression?

Pat Buchanan

Pat Buchanan is a founding editor of The American Conservative magazine, and the author of many books including State of Emergency: The Third World Invasion and Conquest of America .
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