At the beginning of 2012, analysts and economists globally feared that EU is going to pose most of the problems for the financial systems of the world. Having kick started 2013, the old analysts coupled with the new ones, have furnished further fears that the situation in the EU is not yet experiencing the greener side of the grass. The market forces were directed towards the US in the year 2012, as the hype created surrounding the elections and the fiscal cliff was amongst the spotlight of the preceding year. But as the dust has settled on one side of the Atlantic, the devils from the other side are creeping back onto the global stage.

Reinforcing the fact that the EU crisis is over, the EU commission President Juan Manuel Barroso and French PM Francois Hollande voiced their opinions corroborating the latter statement. Even the German finance minister, who ironically said the worst is yet to come, is now saying the worst has past the shores of the continent.

These dubious claims seem odd for those who are fully aware that the GIIPS economies are not recovering, EU unemployment rate just hit a record high and both Greek and Spanish banks remain undercapitalized for the ensuing future, and measures to help them are based on the assumptions that the loans will be repaid and terms will be honored. Still, it seems that as long as GIIPs borrowing rates remain low, the markets will continue ignoring EU risk.

The US took about 100 years and a horrific civil war to unify its diverse cultures but they didn’t have the obstacles of language and a history of hostilities to overcome. This piece from history suggests that different states respond differently to the same reality. Some are willing to make more sacrifices now for the betterment of the forthcoming future. It’s true that the integrated nature of the economies and the better infrastructure capacities will overcome the obstacles faster today.

However, the EU has been hitting solvency issues every few months. We don't know how long the above routine can continue, but it's likely at best limited to a matter of years, not decades.