The Foreclosure Crisis in USA Changing Patterns in East Europe

April 13th, 2009 | Tags: Foreclosure Crisis

The triggering off the foreclosure crisis in USA are changing patterns in East Europe. The American model of free economy without social security has proved to be a bitter pill for countries in East Europe that exited from the grim communistic era.

In March 2009 there were clear signs that the Iron Curtain of the Soviet era had not vanished even if Soviet Russia was no more. Nine EU nations that were once part of the communist side of the curtain had a breakaway EU summit to talk about the raging economic crisis that they were now facing. Hungary’s Ferenc Gyurcsany broke all rules and decorum and was the first one to talk about the “new Iron Curtain”. He thundered that this would not be allowed to divide Europe again. He added, “This is the biggest challenge for Europe in 20 years.” Subtly he aroused the awareness of the people on to a new line of thinking that the clock would have to be put back on plans for unifying Europe.

Across the continent there is hot talk that millions from east Europe are entering the western half because of unemployment and social unrest taking over their part of the Europe. Their new capitalistic leaders foolishly had come to believe that the end of communism meant they would blindly follow the Washington line like they used to blindly kowtow to Stalin’s Moscow hitherto.

The states of Slovakia and Slovenia in central Europe with modest population numbers have as yet avoided the worst of the economic fall out that is spreading across this part but experts predict that eventually these countries too will caught by the flood.

Nicolas Sarkozy of France has taken the halfhearted step to somewhat water down the emerging crisis by announcing an aid of 3 billion Euros to the French automobile industry in return of an understanding that they would not shift their production bases to cheaper regions in eastern and central Europe. By doing so they would have caused heavy unemployment in France.

Eastern Europe is furious that while Spain and the Netherlands had been invited to the G20 summit Poland – the biggest in the bloc, has been left out. The Czech Republic is the only representative and that too because of the rotating presidency of EU. The eastern bloc rightly fears that they will not get a slice of the rescue-pie baked in London.