Nordic countries flirt with prospects of closer ties

Whilst the merry-go-round of debate on how European policymakers should deal with an impending crisis rages on, the first signs of spillover effects from a souring economy are beginning to show up quite prominently in countries who reside on the continent with strong trade links to the EU but haven't conceded the control of their local currency to the economic union.

Nations such as Norway, Denmark, Sweden and Iceland all adopt their own currencies to trade relations with Europe with exception of Finland who make use of the Euro. We've seen the economic dilemma these four countries have found themselves in when dealing with a highly appreciative currency that's leaving them in the cold when it comes to exports.

The progressive and stable political environment together with smaller populations when compared to their European peers have led many to consider these economies as safe havens in times of great panic although they've been amongst the most experimental in terms of negative interest rate policy which many thought would've chased off overvalued currencies.

However being the most productive and innovative countries in Europe and then weighing this up to the situation nations in the EU are facing its not hard to see why they've found their own currency problems. One could say that the truest form of socialism is exhibited in the implementations of such policies in these countries with little to no hiccups that show through due to the high level of education held by most of its citizens that forms an imperative degree of understanding to the necessity of the system.

But in a system that conforms to both sides of the economic spectrum, the strongest attribute of capitalism still shines through heavily when it comes to considering the best opportunity to place savings seeking out returns with the least amount of risk. In saying this, when summing up the analysis in the paragraphs above, its fair to say that the attraction to Nordic shores outstrips the benefits of keeping savings at bay when considering the risks that's gradually building up to a fresh crisis in the EU.

A billionaire tycoon thinks Denmark, Norway and Sweden should be a single country https://t.co/9CRvH0nwqO /Yes, but no NORW football style!

— Steen Jakobsen (@Steen_Jakobsen) May 20, 2016

Suggestions that a new trade bloc between three of the biggest Scandinavian economies should be formed to compete for better trade benefits with the EU warrants the idea flawed when combing through the negative effects ALL of these countries are suffering from Europe due to the perceived similarities amongst themselves. Adopting a common currency will simply draw speculators to a central currency rather than individually as is the case presently but it certainly won't change the perception to a lesser degree.

Nordic countries are victims of their own good doing and their close proximity to Europe is proving to be toxic to their own growth. We cannot expect them to thrive when witnessing the mess that contaminates the European economy.

A move such as the one proposed would only work if the over reliance on trade between themselves and Europe were diluted by the expansion of trade relations with the US which is seemingly becoming the trend taking shape as we see Washington extending its hand of good offering in exchange for support against the forces that threaten to destabilise the European region, the latest being Russia.

Although the issue of Russia is just one example of how Washington plans to keep Europe united, it certainly recognises the powerful influence these leaders have on their counterparts. It also opens up access for the US to incredible technological advancements in the products and services offered by Nordic countries that push the boundaries of competitiveness closer to optimal efficiency, a characteristic that once featured brightly in the European context but subsequently overtaken by the evils of socialism.

With the Euro weakening against most other currencies and the Dollar strengthening overall, now seems to be the best time to seal the deal. Nordic countries are taking full advantage of this with their latest summit hosted at the White House being a signal of intent between leaders. Whether they take further initiative will depend on how grave the consequences in the EU become in the years that lie ahead but with vulnerability showing more and more by the day it could be sooner than we think.

Obama: US, Nordic nations agree sanctions against #Russia should continuehttps://t.co/B7A0A7iHHn @Reuters #Ukraine pic.twitter.com/bJOydi0eK9

— Oleh Kuts (@OlehKuts) May 13, 2016