Euro-tic – The European Nightmare?

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The EU is stuck for one reason or two, its euro-tic dilemma. The EU is stuck between 1+28 chairs: the European chair (European level) and the National chairs (Domestic forces). The challenges facing the EU can be solved through two types of policies: either through more integrated policies, or through individual/national policies. However, the current status-quo centered around this Euro-ticism is unsustainable in the short-, mid-, and long-term.

Today two pressing issues are facing the EU with serious consequences if left unresolved, the migrant crisis in the Mediterranean Sea and the Greek debt crisis. Both crises are challenging and complex in their root causes, in the policy design to solve them, in the policy implementation, and on top of it the outcomes – positive or negative – will only be visible in the mid- and long-term. Considering the current negotiations process at the EU level due to the institutional design of the EU and the domestic pressures no viable and sustainable long-term solutions can neither be designed nor adopted.

Fortress Europe

In the case of the migration crisis in the Mediterranean sea, the EU and its 28 Member States are failing in trying to solve the crisis. So far the only solution has been to increase the funding of the EU agency, FRONTEX, by providing more money and capabilities to EUNAVFOR Med. Nevertheless, the CSDP operation does not have a search and rescue mission, only a border management mandate (refer to chart here). So the EU will be patrolling around Italy and Greece in order to assist the member states in the protection of Europe.

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The solution seems quite simple, an orchestrated distribution plan between the 28 Member States to accept a number of refugees over a 10 year period by offering them a blue-card (similar to the American green-card) allowing them to integrate and find a job in Europe. Such policy is sustainable and acceptable based on European values and norms. Additionally, it would work as most of the migrants trying to reach Europe are principally composed of members of the middle-class in their home countries destroyed by war, terrorism and

Source: The Economist
Source: The Economist

other sorts of crisis.

It is difficult to imagine that neither France nor Germany cannot assimilate 1000 refugees on year basis. Even if this policy could work on the long-term, it would be political suicidal for Chancellor Merkel and President Hollande to come home with such plan. The domestic radical forces (right and left) would build such a front against the leadership that their political parties would not survive another elections.

Grexit or Nothing?

In the case of the Greek debt crisis, the Euro-tic dilemma is once again ever more present. For over five years, the Greek hot potato has been switching hands in Europe. The present crisis, between Prime Minister Tsipras and the Troika (Commission, ECB, and IMF)+Germany, illustrates the euro-tic tension facing the EU and its Member States. Greece is on the verge of defaulting on its debt of €1.5 billion to the IMF on June 30th (some news in the media claim that an agreement will be reached). The

Photo: AP
Photo: AP

country is dealing with a debt of €130 billion representing 180% of its GDP.

Like the migration crisis, the solution would consist in deepening the integration process of the Eurozone. The Eurozone cannot have several gears with on the one hand the ECB in charge of monetary policy and on the other 19 individual fiscal policies.

In the case of Greece, one solution could be to pool the debts of all Eurozone members, naturally keeping track of the percentage of each national debt. One common debt would allow better interest rates and strengthen the Eurozone. Naturally, most European citizens would feel cheated if their elected officials came back home after agreeing on such policy. The domestic price for such policy choice would be serious for national leaderships.

Photo: AFP
Photo: AFP

The solution for Greece is only long-term at the EU and national level. For the EU, the Member States may have to revisit the treaties and address the weaknesses once and for all. This will not happen as most EU leaders are reticent to touch at the treaties – the last one, Treaty of Lisbon, was a continuity of the failed Constitutional Treaty of 2004 -. Several EU Member State’s constitutions require a referendum in order to validate a Treaty. That would probably not pass the domestic vote.

Greece, one of the weakest Eurozone members, is seeking for a ‘silver bullet’ at home. The Grexit seems a possibility – as opposed to five years ago -. Tsipras is now talking with Russia and signed an energy deal with the country, which is under European sanctions. Moscow and Athens deny talks of an eventual financial assistance. Such move by Athens is quite an aberration considering the current sanctions implemented by the EU against Russia for its annexation of Crimea and continuous involvement in the war in Ukraine.

If Greece is in such precarious situation it is because of its recurrent and embedded problem of corruption and mismanagement of money. In order to really make Greece a sustainable EU and Eurozone member, Greece will need to do some serious structural reform and get once and for all ride of corruption. These will take at least a generation.

Euro-tic nightmare, or the end of solidarity

The tension between European and domestic levels has always been present throughout the European construction. So far, it was manageable because of lesser number of Member States, ‘better’ national leadership, and most importantly a continuous economic growth. The 2007 financial crisis changed everything. Solidarity is much easier in time of growth than hardship. Today, domestic public opinions, throughout the Union, feel more comfortable with extreme political parties – see the latest results of elections in Poland and Denmark – calling for a return to inward looking and revisionist policies than with more center political parties unable to govern. Big Member States, like France, are flirting with extreme right and Britain is getting ready for an eventual secession from the Union.

Ultimately, the Union and its national governments are unmanageable. In this period of socio-politico-economico troubles surrounded by serious geopolitical crises and shifts, the European dream of an ‘ever closer union’ seems on the brink of collapse. EU leaders ought to bring more EU into their domestic policies and narratives, and the EU needs to build new bridges towards domestic electorates. Europe is entering a real period of darkness.

(Copyright 2015 by Politipond. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed without permission).
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