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June 02, 2005
The End of the E.U. 2004 Constitution...
I'm pleased and relieved that the E.U. proposed constitution is dead. I'm so glad to see the people in France and Netherlands have rejected this stupid monsterous document. Here is a great little editorial by David Brooks. And here is the even better editorial by A. Kaletsky in the London Times. Kaletsky says:
- Europe is more dependent on foreign trade, investment and capital flows than America. Europe’s businesses and banks are more vulnerable than America’s to currency movements and global capital flows. There is no alternative to the capitalist system of economic management which could secure the survival of Europe’s labour-intensive industries against Chinese competition or make its state pensions, welfare benefits and short working hours affordable in an era when pensioner numbers are soaring, while working populations are in decline.
The idea that closer political integration could somehow turn these self-indulgent dreams into a new European “economic model” has been the dirty little secret of the EU project. Of course the citizens of Europe would like ever-rising incomes and ever more job security, in exchange for doing less and less work and retiring earlier and earlier — and they might be tempted to vote for a constitution which guaranteed these fantasies as fundamental human rights. On closer inspection, however, the citizens have begun to realise that their politicians have been selling Europe on a false prospectus.
The single market and the merging of foreign trade policies did genuinely create prosperity, but every subsequent project of European integration not only failed to deliver the results politicians promised but also made conditions worse. The single currency has been the most egregious. In exchange for giving up the basic tenet of sovereignty — the right to mint a currency and thereby manage the national economy — the EU promised economic prosperity and full employment. Instead the single currency has condemned the eurozone to stagnation and mass unemployment.
For years politicians have made Europe a pretext for imposing unpopular policies — cuts in pensions or higher taxes — which they were too cowardly to justify in their own right. But they always promised that giving up sovereignty to Europe would somehow stave off economic reality and make their citizens better off.
The bottom line is: the European Welfare state of the last 50 years is falling apart. It simply can not be sustained. As Brooks says
- The core fact is that the European model is foundering under the fact that billions of people are willing to work harder than the Europeans are. Europeans clearly love their way of life, but don't know how to sustain it.
Over the last few decades, American liberals have lauded the German model or the Swedish model or the European model. But these models are not flexible enough for the modern world. They encourage people to cling fiercely to entitlements their nation cannot afford. And far from breeding a confident, progressive outlook, they breed a reactionary fear of the future that comes in left- and right-wing varieties - a defensiveness, a tendency to lash out ferociously at anybody who proposes fundamental reform or at any group, like immigrants, that alters the fabric of life.
This is the chief problem with the welfare state, which has nothing to do with the success or efficiency of any individual program. The liberal project of the postwar era has bred a stultifying conservatism, a fear of dynamic flexibility, a greater concern for guarding what exists than for creating what doesn't.
Posted by rakhier at June 2, 2005 11:02 AM