Everywhere you look there are signs that Europe is coming apart at the seams. Just a month after the crisis in Greece abated, the influx of refugees fleeing the war-torn Mid-East finally overwhelmed the Balkans leading directly to border closures and precipitating a spat in Brussels regarding how best to handle the people flows.
In short, not everyone agrees with Angela Merkel’s open door policy and indeed, Hungary’s Viktor Orban has led the push for the preservation of what he calls Europe’s “Christian heritage” by keeping asylum seekers out. Now, there’s a serious rift developing and further efforts to force recalcitrant countries to accept migrants they don’t want could well spell the end of the Schengen project.
Meanwhile, Portugal is on the brink of a political crisis as Costa’s Socialists move to align with the Communists and the Left Bloc in an effort to overthrow the government and roll back austerity, presaging a debt showdown with Brussels and Berlin.
As if all of this weren’t enough – and we didn’t even mention the potential for “Brexit” – the Catalan black swan is back on the heels of what amounted to an independence referendum in September (see here).
On Monday, Catalonia’s parliament approved a “democratic disconnection” resolution which will see the region push to separate from Spain and establish an independent republic. Here’s WSJ with some color:
Catalonia’s parliament approved a resolution Monday to take steps to establish an independent republic, vowing it would begin ignoring Spanish institutions and setting up a potential standoff with…