A Look at Europe

I follow with interest the events in Europe – a fascinating experiment in integration and collaboration started after WWII.  After centuries of wars and enmity, Europeans started their journey toward economic, social, and political unity. 

It all started in 1958 by six founding nations: Germany, France, Italy, Belgium, Luxembourg, and Netherlands, with the Treaty of Rome.

A Quick Overview

The economic integration was the first step.  It brought development and a better standard of living to member countries.  In the spirit of solidarity, economic assistance from Brussels permitted poorer members the needed resources to upgrade their infrastructure. 

Cooperation has improved the collective living conditions.  Other countries have joined in since 1958 … United Kingdom, Ireland, Denmark, Spain, Portugal, Greece, Sweden, Malta, Cyprus, Latvia, Poland, Lithuania, Estonia, the Czech Republic, Slovakia, Croatia, Slovenia, Romania, Albania, Bulgaria, Finland, and Hungary.

There are now 28 member countries.  Serbia, Montenegro, Kosovo, and Macedonia are in different stages in their application to join.  Turkey has also requested membership. 

Economic cooperation has morphed into a quasi-political union.  Each country is still sovereign in its foreign and defense policies.  Since 1998, eighteen countries have adopted the euro as their currency scheme, while ten others have decided to keep their national currency in place, most notably the United Kingdom. 

The Maastricht Treaty recognizes European citizenship, permitting citizens to move freely and work within the EU.

A layer of supranational bureaucracy has emerged.  The EU capital is in Brussels.  The following institutions are now in place: the European Commission, the Council of the European Union, the European Council, the Court of Justice of European Union, the European Central Bank, the Court of Auditors, and the European Parliament.  The citizens of the member countries elect Members of Parliament (MP).   Consensus rules most, if not all, the decisions made by the governing bodies. 

Twenty-four different languages are spoken.  The population of the EU is 503 million.  In terms of GDP, at  $ 18.1 trillion, it ranks number 1 in the world.

The Treaty of Schengen permits the free movement of people, goods, services, and capital.  Not all members have ratified the free movement of goods and people, notably the United Kingdom.

Key Challenges

Unifying such a diversified group of nations brings with it many issues.  Some easily resolved, others defy resolution.  Many benefits have accumulated over the years.  Principally, Europe has been at peace for 70 years!  But many complications have accumulated.  The following, incomplete, list is an example:

·   The extra layer of bureaucracy is slowly eroding national sovereignty and slowed down important decision-making.

·      Differing national priorities prevent a unified   defense, economic, and foreign affairs construct. 

·      

     Uneven economic development has created differing levels of standard of living.  

·      

  Perceived discrimination by Northern members toward Southern and Eastern members continues.

·  Twenty-four official languages complicate the publication and dissemination of important laws and regulations.

·        National suspicions have resurfaced during the economic crisis of the past 7 years. 

·        Brussels seems to be overwhelming the member states with finite regulations.

·        National pride and culture continue to dominate decision-making.

     Laws and labor practices have yet to be fully harmonized.

·   Differing taxation schemes impede the free movement of capital across national borders.

What Next?

The EU, in my opinion, will continue to evolve, but I do not see it emerging as a full-blown federation like the USA.  It might resemble a confederation like Canada with autonomy to the member states in several areas. 

The current government organization makes decision-making ponderous and slow.  In a world of constant change, response to change will need a more accelerated and streamlined process.  Reform will be needed, sooner rather than later.

Social change must address the perception that there are “first bananas,” “second,” and “third bananas” among the ethnic groups. 

Economic development will be needed to lift the poorer members to a somewhat higher but not necessarily same level.

The EU will need to have a more unified defense and foreign policy.  At present, duplication and overlap amongst members squander limited resources and influence.

Eventually one of the 24 languages must emerge as the in-common EU language.  I believe that English will be that language, although the French will resist that. 

The Euro might disappear as the second currency behind the dollar to be replaced by the Chinese Yuan.

Closing

I am a dual passport holder (USA and Europe) and, as result, I am free to work (not that I want to anymore) and live in 29 different countries.  What a great privilege!  I feel honored.  The EU has a lot it can learn from the USA when it comes to organization, decision-making style, and renewal.  The USA has a lot to learn from the EU about solidarity. 

Your thoughts?