“The United States of Europe” is a concept that has recently gained traction as an idea. Prominent politicians such as Gerhard Schroeder (former German chancellor) have publicly called for such a creation. However, several problems present themselves with such a construct.
Hundreds of Millions of Euros and political efforts have not been enough to save the Euro. The framework in which the Euro was conceptualized is not right. In a common currency zone there should be a minimum in commonality or at least a trend towards more commonality. At present, it seems unlikely that Greece and Germany could ever be more apart economically, financially, socially and even politically. A common currency without commonality is by definition unsustainable. In difficult times such as these however, standing united to come out stronger in the end, uniting under a single name of “Europe” sounds tempting, even persuasive.
Does anyone really believe though that a common tax rate from Italy to Finland will be implemented? A common police force in Spain and Romania? The same levels of pensions and social benefits in France as in Bulgaria? Where would parliament sit and who would elect members? What will come of parliament in Paris, of the Reichstag in Berlin? Will they be turned into museums? Before any one of these decisions is reached the Euro will have at the current rate suffered a long and slow death.
Hundreds of Millions of Euros and political efforts have not been enough to save the Euro. The framework in which the Euro was conceptualized is not right. In a common currency zone there should be a minimum in commonality or at least a trend towards more commonality. At present, it seems unlikely that Greece and Germany could ever be more apart economically, financially, socially and even politically. A common currency without commonality is by definition unsustainable. In difficult times such as these however, standing united to come out stronger in the end, uniting under a single name of “Europe” sounds tempting, even persuasive.
Does anyone really believe though that a common tax rate from Italy to Finland will be implemented? A common police force in Spain and Romania? The same levels of pensions and social benefits in France as in Bulgaria? Where would parliament sit and who would elect members? What will come of parliament in Paris, of the Reichstag in Berlin? Will they be turned into museums? Before any one of these decisions is reached the Euro will have at the current rate suffered a long and slow death.
In contrast, one vision, more sustainable than that of a USE, is that of a Euro 2.0. A common currency zone, a sort of club, in which members join after being examined and must adhere to the rules or be kicked out. Greece joined the Eurozone after providing data below any form of acceptable accounting and is now treated as an equal. If a young man enters a pub and is found to have provided a fake I.D., he will be kicked out. Such an approach would be helpful for what is to come should the current Euro not survive the current crisis.
In extraordinarily uncertain times such as these, populist moves may come to resonate well with an audience. Take a step back however and the United States of Europe as a concept is exposed for what it really is: European populism in XXL.
Further reading:
http://www.reuters.com/article/2011/09/04/us-germany-europe-idUSTRE7831IE20110904
http://www.reuters.com/article/2011/09/04/us-germany-europe-idUSTRE7831IE20110904
You are right - Europe is just too diverse ever to achieve political union. But the process of monetary union seemed to be progressing quite well until someone had the bright idea of trying to synchronize the economies of rich countries like Germany with those of the PIGS, as Greece and its counterparts are rather rudely termed. An economy built on industrial might and financial services functions very differently to one characterized by tourism and olive groves. Could the Eurozone contract to become a sort of monetary Schengen area?
ReplyDeleteThe best blog I have ever seen in my life!
ReplyDeleteI would not describe it as modern populism but as visionary and optimistically realistic.
ReplyDeleteThe sovereignty of the EU governments is already passed on the the European Court and their ruling is final even for anti-EU states like the UK (See Factortame Litigation case).
A stronger unification is not only our current course, it is in the mindset of the young generation. Just think about the 50s and 60s: The war was just over and globalization science fiction. The politicians followed the Doctrine "The closer we are connected, the less likely is another war". The EU was founded and each WTO round pushed global trade up the slope of free trade. Nowadays, we know this course was the right one, fostering peace. We, the young generation know, live and benefit from globalization and the close relationships to other States, especially European States.
This current crisis is the absolute and final test for the EU. If we get through this with Greece still part of it, the USE will happen some time in the future. If the Greeks decide in January to leave the EU, a country like the USE will be fiction again.
No matter how strong a feeling of solidarity one may hold, the appeal of a zone with strong regional differences where tax receipts from richer states are transferred to help less responsible ones is limited. The differences amongst members are so stark that even simple agreements (a simple standard for the safety of nuclear power plants for example) are not being reached. I do not see the USE as visionary but rather idealistic.
ReplyDeleteYou cite the example of the WTO as promoting freedom and peace. However, the last round in Doha opened in 2001 and has not yet reached an end. Progress has stalled. What sounds good on paper does not always transfer as efficiently into reality, be it the WTO or a concept as expansive as the USE.