Should the E.U. Stick Together ??

EUROPAIt Must Adapt, Not Disintegrate. Should Europe really reverse course and disintegrate? Let’s not open that Pandora’s box, for it contains all kinds of evils that will be spread around Europe and its environs. European Union was founded on the rubble of war. It took hundreds of years for Europeans to understand a common destiny is best served by common institutions. While European Union’s past was about peace, its future is about power. Given Europe’s shrinking share of this planet’s population and industrial output, its influence and its affluence can only be preserved when Europe acts in unison. It was Brit, former Prime Minister Blair, who has described this nexus as eloquently as anybody. And It is another Brit, one of Blair’s successors as prime minister, David Cameron, who seems willing to bow to those who are bent on forgetting about it. Price to pay for disintegration is higher than any conceivable gain. Disintegration is a lazy response to a nuanced current problem. It puts peace and power at risk. Influence and affluence will become a chimera. Little Englanders, little Deutschlanders and little Polanders will vie for attention and compete for global market share. Their conflicts, and, yes, maybe wars, a global tragedy in the old days, will return to Europe as a regional farce. No mistake about it: There is a problem with unified Europe, and Cameron rightly acknowledged it in pledging to put U.K. membership in the European Union to a referendum. In fact, Cameron has deconstructed the founding myth of European Union according to which its direction is “ever closer union”. It is not. At least not anymore. And not for all. Certainly not for Britain. Old continent’s future will not become a “United States of Europe,” much as many Americans (from George Washington onward) would like it to in the interest of the simplicity and comparability. Nor will it become a 19th century style collection of nation states, despite hope of some nationalists and isolationists. Rather, multitiered European construct seems to be emerging. At core lies eurozone that solves its problems through the increasing integration and reform. Around this nucleus a ring of countries with different levels of integration with euro core is developing. What binds these countries to the core is access to single market. It appears that Poland will eventually join the euro zone, while Britain might become the Pluto to the euro zone’s sun. To avoid disintegration, the European Union is headed toward a more flexible and adaptable system.

Room for Debate:


Acerca de ignaciocovelo
Consultor Internacional

2 Responses to Should the E.U. Stick Together ??

  1. Professor Uziel Nogueira says: CAN the EU stick together? My line of reasoning is similar to Mr. Kleine-Brockhoff a.i, the European integration process will adjust to the euro zone crisis and not disintegrate. The reasons are economics and not politics, however. First, the integration process is irreversible. Second, it remains to be seen whether all 17 euro zone member countries can sustain the common currency, the euro. Third, the EU entered a period of low growth and social tensions. The single market-economy and labor mobility are the central fixture of the EU. The process is irreversible for a simple reason. It makes economic sense and brought growth and prosperity for the 27 member countries, poor and wealthy alike. Greece is doing everything it can to keep the common currency. GB leaving the EU is just political nonsense. The euro zone debt crisis is THE main problem affecting the overall integration process. The public debt crisis requires structural economic reforms and fiscal policy adjustments in Greece, Portugal, Spain, Ireland, Italy and France. As result, these countries face political and social instability for some time to come.

    THE question mark in the euro zone is whether the political system in debt ridden countries can sustain a program of economic reforms – fiscal restrain that takes years to yield positive results. Even if the political system endures, can Greece, Portugal and Spain’s economies be reformed and become competitive enough to sustain the euro?

  2. Europe’s problems are well documented. The scale of the problems, the inadequacy of financial resources available, and political difficulties mean that decisive action to resolve the European debt crisis is unlikely. A slide into a deeper economic malaise, for both at-risk countries and stronger eurozone members, is the most likely outcome. The real economy, already in recession, is likely to remain weak, with low growth and high and rising unemployment. Eurozone members remain committed to avoiding the unknown risks of a default and departure of countries from the euro. This means that assistance will be forthcoming, although the exact form of the help and the attached conditions remain uncertain. Peripheral countries will be forced to rely on the main bailout fund, the European Stability Mechanism (ESM). Unless the size of the ESM is increased, the European Central Bank (ECB) will be forced to provide financing directly and indirectly. Central banks in stronger countries will continue to use Target2 (the Trans-European Automated Real-time Gross Settlement Express Transfer System) to settle cross border funds flows within the eurozone, to finance peripheral countries without access to money markets to fund trade deficits and capital flight. Over time, financing will become concentrated in official eurozone agencies such as the ECB and Target2. Risk will shift from the peripheral countries to the core, especially Germany and France. The ESM relies primarily on the support of four countries: Germany (27.1 per cent), France (20.4 per cent), Italy (17.9 per cent) and Spain (11.9 per cent). If Spain or Italy needs assistance, the contingent commitment of the remaining countries, especially France and Germany, will increase (…..)


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