Monday, May 24, 2010

Is That You Lenny? Is That Mouse Dead Yet?

As the Euro continues to collapse, it provides an excellent opportunity to see a number of foreign relations theories in practice. The one that seems to be on full display is the never ending dilemma between the realist and liberal world views of foreign relations.

The European Union, along with the United Nations, has long been the liberal viewpoints' shangri-la. A system composed of intergovernmental organizations (IGO's) and nongovernmental organizations (NGO's) working together to create a zone of shared peace, prosperity and fairness. They thought that the EU would finally be able to break free from the self-interested confines of the nation-state power structure, the foundation of the realist point of view. For many years they thought they had achieved success. Borders were broken down both literally in the sense of free immigration within the EU and figuratively by creating a one currency Eurozone that broke down the barrier of trade, resource and travel. Workers across the EU received good pay, good benefits and the basic human dignity associated with large welfare states and it had all been achieved by driving a sense of a European community, in stark contrast to the individualistic ideal on display in the United States. As the Euro rose in value against the dollar and as the lifestyle standard rose across the EU, the EU grand pooh-bahs in Brussels beamed with pride at the thing they had created that could rival and possibly surpass the United States on the world stage. Make no mistake in underestimating the role European inferiority complex plays in this equation.

The only problem was that it was all a lie. A spectacular illusion that deceived the senses at every level. Why has the EU failed? Why is it collapsing now? The answer is simple realistic theory. The nation-state is the largest political entity that can be achieved and all things serve the end of the nation-state. How does this apply here? Easy. Greece and many other poor countries in the EU wanted to maintain the high standard of living the people had grown accustomed to and that the EU demanded. So they spent when they had no money and lied to cook the books when called to explain their actions. Essentially, they ignored the rules, scammed the system so that their nation could continue reaping the benefits of EU membership, free trade, free immigration and financial support. What punishment could they receive? If they get kicked out of the EU, they reinstate their own currency, devalue it and pay off the debt and deal with hyperinflation. Stay in the EU and get bailed out by the other EU members, the IMF and the United States. There really isn't a losing bet here. Countries like Greece were heading toward devaluation and inflation with or without the EU because their welfare states were simply too large to sustain themselves indefinitely. The EU certainly helped to postpone that event and there was some chance it could prevent it so what did they have to lose? This is why all the poor EU nations wanted to join. The can suck up all the benefits of membership and when they come up dry at the register, the rich EU countries will bail them out.

Why would the rich EU countries get into a situation that clearly drains them of resources? Power. Each large EU country, especially France, wants to dominate the EU's policies and personality. France, Germany, UK, Denmark, etc. will gladly allow the Greeces', Spains', Italys' and Portugals' of the world to lie to them and take their money if at the end of the day, they are seen as the true power behind the EU. Nation-state power theory rises again as nations act in their own perceived best interest. This is why the EU constitution went down in flames. Voters realized it was a French/German power grab and wanted no part of it. The main miscalculations by the rich states, however, was just how bankrupt poor countries could get and just how screwed up their own economies could get. When the recent recession started, it exposed just how flimsy the supposed European community was. Countries turned on each other, threats were made. A trillion dollars was pledged to prop up the failing countries but no substantive changes were made in how business was done. No single nation was willing to give up any sovereignty or power. The EU, the Euro and liberal world view ideology has been crumbling ever since.

The final nail in the coffin was the proposed fix to this problem. A centralized government authority to provide blanket control over all EU member states in certain areas. This would turn the EU from a cooperative IGO into a federalist superstate. Does this sound familiar? It should. If Europe were to try this solution, they could simply modify the name of an existing organization that operates with sovereign states yielding power to a federalized, equally sovereign centralized authority that has functioned marvelously until the recent past.

They would become the United States of Europe.

And the nation-state would continue its run as the master of the international political scene from now into eternity.
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1 comment:

  1. You forgot the "freaking"! United Freaking States if Europe! Well, if I've heard right, we are spitting our money at the Greece problem. Does that mean we are really giving money to Greece so Europe can take it all in the end. Besides that, why didn't we do what Greece did? Raise the age of retirement for the military. My dad collects his retirement check since he was 38. Beside that fact that he is insane, he could have easily put in another 5 to 10 years. Instead he makes more from the government in retirement than I do working 50 hour work weeks. Come on America! Thats the smartest thing ever...well besides all the riots n stuff!

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