Friday, 16 July 2010
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NEWNATIONS BULLETIN 16 JULY 2010
QUO VADIS EUROPE
After the many successes of the European Union which over the years have given substance to the European ‘idea‘, the question now arises with new urgency, where is the EU heading? Has Europe from being a multiplier of strengths, become a multiplier of weaknesses? Is Europe “seeking to resign from history”?
During the recent Greek economic fallout, in the wake of the division of this crisis within the EU between those inside the Eurozone and the others, the problem became clear to all, that unlike any national currency, leaving aside the rules of the European Bank, the political authority did not exist within the Union to take measures to underpin the Euro currency.
World markets presumed correctly that Germany would individually take measures to strengthen its economic position just as the Greek one was failing, with the spectre of similar situations arising in Portugal, Spain, Ireland and other weaker brethren.
That in turn prompted the question that following this experience, for the future, would those inside the eurozone need to develop seperate institutions to bring new politico-economic controls over those EU nations that are eurozone members?
A tighter central political control over the economic performance of eurozone member nations, has no precedent. Additionally, a two-speed European model would be back in play, raising obvious questions not only about the euro, but more profoundly about the European Union itself.
Martin Woollacott traces the long list of achievements by the EU since its inception and in the new circumstances,
analyses the current political and economic position of the Union, and its members. He asks “Is the European Union a victim of its own success”?
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