The big news this week has been the rejection of the European Constitution by France and the Netherlands. This is one significant development of several other events and trends that are taking place right now in Europe.

Last month German Chancellor Gerhard Schroeder called snap elections for this fall in the wake of losing a key regional vote . It is likely there will be a change in leadership in Germany at that time. The German economy, along with most of Europe, has been in a sustained slump. Unemployment is at a level unknown since the pre-Hitler days of the early 1030's. There is a report this week that some German leaders are considering leaving the common Euro currency and going back to the mark. The stalled process of European unification has caused many to lose confidence in the current configuration.

The election of the German Pope has added an interesting factor to the equation. Benedict XVI has a special interest in not just his homeland but the whole process of European unification. The selection of the name Benedict is significant. Saint Benedict is the patron saint of Europe. The last Benedict, the XV, was the pope during World War I and labored hard to prevent and end the conflict that tore apart the continent. Will this pope work hard to prevent the breakup of today's union ?

Some might wonder "why" we focus so much attention on Europe and religion in our publications. The reason is that both have played a significant role in past history and figure to be at the center of much of yet to be fulfiled prophecy. How this is described in Daniel and Revelation is more that I cn go into at this time. But we realize the need to write and speak on this more in the coming months. We have a booklet in production entitled, "The History of Europe and the Church". It should be published by this fall. It will go into the detail of the prophecies and show what lies ahead when the prophetic "beast" rises once again.

Paul Kieffer, our European Correspondent for World News and Prophecy has posted an analysis of the yesterday's rejection of the European Constitution by the Dutch. Here is part of what he said:

"In its current form, the proposed EU constitution is now a dead issue... The rejection of the EU constitution reflects the potential rift within the EU between those countries desiring to keep the EU as a free-trade zone and those EU members wanting closer political integration - or even a full political union.

The "core Europe" concept is the potential solution to the problem: a core of EU members - perhaps ten? - who form a political union within a greater EU free-trade area made up of 25 or more countries. For the "core Europe" concept to succeed, Germany will have to be one of its members. If that is the case, the UK surely will not be part of the core".

Read the whole article here.

Another WNP writer, Melvin Rhodes, has written me his comments on the subject. He is adding another perspective to the idea that the European economy is on the ropes in relation to the United States.

"Sixteen months ago the US was the world's biggest economy. Now, with the ten new members of the EU who joined May 1st last year, the EU is the world's biggest. The EU is the world's biggest trading group by far. In fact, Germany alone accounts for more world trade than does the United States. Trade gives a country clout. The EU has trade pacts with almost all developing countries around the world.

We tend to focus on higher rates of unemployment and slower growth but trade and trade balances are also important. The former make us look good, the latter bad, so we dismiss the latter as irrelevant.

Germany is also the world's second biggest creditor nation. Japan is #1. Japan, China, Germany and others have made America's economic expansion possible as their banks have financed roughly a third of it. We owe that money to them and will have to pay it back with interest.

"The Anglo-Saxon model" so criticized by the French in Sunday's referendum has much to commend it and I am thankful that I live in it rather than under the German-French model. However, our model is built heavily on debt and that debt, both internal and external, is now at record levels. The big question is how long it can go on. NPR two days ago devoted a whole hour to the housing bubble. If the bubble bursts, we are in deep trouble, whereas Europe would not be as negatively affected.

I am also concerned about the implication in some articles that the "no" vote in France and Holland has set-back the course of European unity. This may, of course, be the case. But it could also lead to the establishment of a two-tier Europe. Germany, which ratified the treaty, is saying that there cannot be a re-negotiation and that those who are committed must move on. Ten nations have already voted "yes". Could these ten form a full political union while the others remain loosely tied to them in an economic union? I've no need to remind you that "ten" might have some significance!

It is interesting to note the division in Europe. Those that have voted "yes" include the Axis nations of World War II, the countries that were either allied to Germany or sympathetic to it (like Spain which had a fascist government). Put another way -- the gentile nations are lined up in the "yes" camp with the Israelite nations in the "no". But, even if the "yes" countries move forward together, the "no" will not have the freedom to leave the European trading system as Germany is their major trading partner. Only England could arguably leave the trading bloc as it does as much trade with the US as with other countries in the EU -- but the UK is the exception, not the rule.

Yes, it is true that the "no" votes could delay European integration, but it is also possible they could speed integration. It's simple arithmetic. It's easier to get ten people to agree to something than 25. It's the same with countries".

Europe may be struggling at present. But don't count it out. What comes out of the current scene will have serious implications for the future of the United States and the world.