More on Europe

Looney Dunes: Hugh on Europe

Hugh triggered this
Well, the French Vote and my tracking of the Euro really was instigation of immediate interest.

Other readings:

France's Rejection of E.U. Charter Emboldens Opponents - New York Times:

"PARIS, May 30 - The shock of France's rejection of a constitution for Europe reverberated throughout the continent today, with Britain suggesting that it might cancel its own popular vote on the document and the far-right in the Netherlands gaining even more confidence that a 'no' vote would prevail in Wednesday's referendum there."

Downhill from here
Rejection of Eurocrats by one of the founders of the "New Europe"
Future of the Euro in doubt.

"The most serious potential foreign fallout from the no vote in France came from Prime Minister Tony Blair, who called for a "time for reflection," saying that it was too early to decide whether a popular vote could go ahead in Britain. Foreign Secretary Jack Straw said he would announce a decision no earlier than next week.

"Underneath all this there is a more profound question, which is about the future of Europe and, in particular, the future of the European economy and how we deal with the modern questions of globalization and technological change," Mr. Blair told journalists during a vacation in Italy.

His tentative remarks contrasted with the bold approach taken by other European leaders, including Chancellor Gerhard Schröder of Germany and Prime Minister Jean-Claude Juncker of Luxembourg, who said the ratification process must go on.

Similarly, the Union's foreign policy chief, Javier Solana, told a news conference at the Union's headquarters in Brussels, "Life continues.". "For me, the worst that could happen is if, as a consequence of that, you or the citizens of the European Union or the leaders of the European Union enter into a zone of paralysis psychologically," he said.

"Just a few weeks ago, for example, Roman Prodi, the former president of the European Commission, predicted that a French no would mean "the end of Europe." Today he called the outcome "a disaster," but insisted that it could be worse.

"This is still better than a war of secession like the United States once had," he said in a telephone interview. "I'm serious now. We must keep this perspective in mind. We don't have a treaty, but we also don't have wars."

That is certainly true, but the lowest-common denominator approach was not what the leaders of Europe had in mind when they embarked on the drafting of the Constitution, a process that took two-and-a-half years.

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EuroToast:

Euro Bruised by Rejection of New Pact by France - New York Times:
"Few experts are predicting a full-blown crisis for the euro, which is safeguarded by the politically independent European Central Bank. France's refusal to ratify the constitution will have little impact on the running of the monetary union, or on the maze of regulations that govern the world's largest trading bloc.

Still, as Paul De Grauwe, a Belgian expert on the currency, put it, 'Something psychological has changed.'

Like many economists, he believes that the long-term viability of the euro hinges on the gradual political integration of the countries that use it - a prospect that, for now at least, is dashed. 'Can the euro survive without a political union?' Mr. De Grauwe said. 'I have my doubts.' "

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Spooked by a sullen, rebellious electorate, European leaders might give up trying to force sweeping changes of their social welfare systems. Publicly, at least, they are likely to talk down American-British-style economic policy, with its emphasis on competition and untrammeled markets.

"There has been a parallel debate in Germany and France about neo-liberalism versus the social market economy," said Allan Saunderson, chairman of EuroZone Advisers, a consulting firm in Frankfurt. "That debate is going to become a lot sharper over the next few months."

At its heart, he said, the question is whether these countries can still afford to prop up costly welfare states in a global economy. In Germany, the debate has mutated into an occasionally vitriolic attack by the governing Social Democratic Party on big companies and foreign investors.

Rules? What Rules? : "France, Germany, Italy and Portugal are all in violation of the deficit limits. In Portugal, the deficit may reach 6.8 percent of gross domestic product this year - more than twice the level allowed by Brussels."

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"Among other casualties of France's rejection may be the further expansion of the European Union, a process economists often advocate as a way to spur Europe's growth and competitiveness.

Some Western European leaders are likely to resist the entry of Turkey into the union because it would stir voters' fears of an influx of low-cost foreign workers. Fear of such cheap labor fueled the anti-Europe camp in France."

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The peasant's revolt - more Eurodurge:

The peasant's revolt - Sunday Times - Times Online:

Conclusion : Europe is a collection of peoples with their own histories and borders. Union is very far off, if ever.

"In Brussels the “mannequin pis” winked. In Holland the boy took his finger from the dyke. In Paris Marianne bared not her breast but her buttock. The cock crowed, the lion roared, the bear growled. Bliss it was last week to be alive and in Amsterdam, the city which since the 17th century has embodied civic autonomy and global commerce. It has just perpetrated a revolution and can hardly believe it.

Two hundred kilometres to the south in Brussels, the humiliated courtiers of the European Union sat gloomy in their gilded salons, wondering how to hold off the upstart mob. Jean-Claude Juncker of Luxembourg, presiding over the EU’s Council of Ministers, tearfully suggested that Europe’s voters be asked to vote again “until they get it right”. Lord Kerr, Britain’s envoy at this court, described the referendums as a “macabre ritual”. Jose Manuel Barroso, commission president, warned of a “risk of contagion” spreading across Europe. Only in Brussels is the word democracy synonymous with disease."

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If history offers any lesson from the past week it is that Europe courts disaster if it allows the politics of union to override the politics of division. Regions, enclaves, provinces and statelets are part of the European kaleidoscope. The peoples of eastern Europe, notably in what were Czechoslovakia and Yugoslavia, have just risked their wealth and even their lives to recover their historical identities. They want self-government to mean just that, as do the enclaves of the west. Only if they are convinced such so-called subsidiarity is genuine will the myriad peoples that make up Europe consent to the national or supranational disciplines needed to keep Europe competitive.

This past week has seen democracy explode its most dangerous weapon, a referendum. The release of energy was awesome. Power asked a question of freedom and was given a punch in the face. Such moments are rare and they are beautiful. They are also menacing and full of meaning."