Europe’s Economic Crisis: Where Will It Lead?

Germany’s economic power is being shackled by problems in the periphery of the eurozone. What might this mean for current efforts for European unity—and for end-time Bible prophecy?

So, looking at the current economic news, who’s got it worse: America or Europe?

First, a prophetic framework and one possible scenario

For many years, as a student of Bible prophecy, I assumed the economies of the Anglo-Saxon nations would at some point just collapse, giving way to the end-time economic system based in Europe and prophesied in the book of Revelation. You may recall: Someone called “the beast” is to impose severe limitations on all economic activity, as prophesied in Revelation 13.

“And he [the beast] causes all, both small and great, rich and poor, free and slave, to receive a mark on their right hand or on their foreheads, and that no one may buy or sell except one who has the mark or the name of the beast or the number of his name. Here is wisdom. Let him who has understanding calculate the number of the beast, for it is the number of a man: His number is 666” (Revelation 13:16-18).

This leader and his power bloc will emerge out of Europe. We know that from Revelation 17:9, where the religious power to dominate the political-economic entity sits on seven mountains, clearly an allusion to Rome.

Once the euro was instituted in 1999, it appeared that prophecy was approaching its fulfillment. This, some thought, was surely the beginning of the realization of these prophecies. Europe was to push aside the political and economic hegemony of the Anglo-Saxon powers and institute a time of economic (as well as religious, political and military) woe and trouble, to precede the return of Jesus Christ, the Messiah.

But the current economic news from Europe says, “Not so fast.” In spite of the deep problems facing the U.S. and British economies, one can make a pretty good case that a worse crisis is currently occurring in Europe.

Troubles in the eurozone

Consider the following: The front page of the June 14 edition of the Financial Times carried two ominous headlines. The first is “S & P Cuts Greece’s Rating One Step Closer to Default.” This article explains that on Monday, June 13, Standard & Poor’s cut Greece’s long-term sovereign credit rating to a C, indicating deep distrust in this eurozone nation’s ability to correct its economic weaknesses.

Further, the yield on Greece’s 10-year bond is now above 17 percent, indicative of investors’ distrust in the Greek economy. (Compare this with Germany’s current 2.94 percent yield on its 10-year bond, and one gets a feel for the difference in confidence levels in the two nations.)

Greece is the sickest of the sick nations of the eurozone. Others are struggling too. Unflatteringly dubbed “the PIGS,” the weakest are usually deemed to include Portugal, Ireland, Greece and Spain. Some would add in Italy. All are struggling, to greater or lesser degrees, with severe fiscal deficits and the need for austerity budgets.

The other ominous headline in the same issue of the Financial Times is “The Eurozone Is Heading for Break-Up.” Economist Nouriel Roubini expresses what many have noted in the last three years: that once stronger and weaker economies are locked together in a currency union, they can no longer rely on see-saw currency movements to balance out the inconsistencies.

The result has been draconian austerity measures in the “PIGS” nations, coupled with reliance on the economic engine of the eurozone, Germany, for bailouts. But how long, one wonders, will the German people tolerate this and not become restive?

Current U.S. currency advantages

For all its economic problems (and they are serious and getting worse), the United States doesn’t face the same problem of independent nation-states frozen into one currency union. The U.S. government has much more power to regulate national economic matters than the European Union does—and its currency still has the considerable advantage of being the No. 1 reserve currency of the world. The euro’s woes have apparently constrained it from a more vigorous challenge against the “greenback.”

Of course, with the growing U.S. debt and other economic problems, things could change quickly, based on the mood of China and other creditors.

Getting to 10

Now consider one more fact well-known to Bible students: End-time prophecy tells us of a union of 10 nations to form in the last days (Revelation 12:3; 13:1; 17:3, 12). The European Union currently comprises 27 member states, of which 17 now use the euro as their currency. How do we get from 27 or 17 to 10?

One possible scenario suggests significant economic dislocations yet to impact Europe.

We need to keep our eyes on economic developments in Europe—and the ultimate formation of the configuration described in the Scriptures. It will impact our lives and the lives of all who dwell on earth (Revelation 17:8).

Ralph Levy is a minister of the Church of God, a Worldwide Association, living in Ohio.