Only a United, Federal Europe Can End Its Financial Turmoil

By Gonzalez, Felipe | The Christian Science Monitor, January 1, 2011 | Go to article overview

Only a United, Federal Europe Can End Its Financial Turmoil


Gonzalez, Felipe, The Christian Science Monitor


The global financial crisis continues, threatening countries across the European continent. A united Europe requires a united solution. To survive this and future economic storms, the European Union needs the capacity to coordinate economic and fiscal policies on the federal level.

Three years after the onset of the most serious crisis since 1929 - and a year after the signing of the Treaty of Lisbon meant to consolidate Europe - financial turmoil continues apace across the continent. Neither the European Council, the Commission, nor the Central Bank is able to stop it. Individual member countries appear defenseless, like sitting ducks, before speculators who perceive the timid measures taken so far as an invitation to continue mounting their attacks.

In short, the financial crisis of the early 21st century has exposed the crisis of governance at the heart of the European project.

The EU today is trapped in the contradiction of a monetary union that lacks the capacity to coordinate economic and fiscal policies. Clearly, widely divergent policies of different countries within a borderless internal market that shares a single currency is untenable.

World debt crisis: eight reasons you should care

Historical crossroads and choices

Europe thus stands at a historical crossroads. It faces three choices:

1. Continue business as usual. That means riding out the unending storm day by day, mired in the clashing assertion of short-term national interests that feed off nationalist reactions and nourish Euro-skepticism. We will continue running after speculators, with ever more solemn statements that no country will be abandoned to its fate. Tentative steps will be taken to amend relevant treaties to overcome particular hurdles. Public opinion will turn against structural reforms that are perceived to be "imposed from outside as the price to pay for restoring market confidence."

2. Yield to pressure from those who want a return to a simple free-trade area, without a single currency and internal market. That would mean that each country would again make do with its own currency, employing competitive devaluation to get out of a short- term jam instead of adopting long-term policies that would make that country globally competitive. Just when we most need a united Europe to remain relevant in a global economy, we would be yielding to the demons of history.

3. Move forward decisively on the path toward "federalization" of economic and fiscal policies. In my view, this is the right course because it is the only way Europe can emerge from the financial crisis that grips it today and become a competitive master of its own fate in the global economy.

Path toward federalization of European economy

Logically, this federalization should further be completed with a Common Foreign and Security Policy, for which the current treaty provides sufficient authority. Here, too, there is a divergence that impedes a forceful European voice on the global stage. While polls show the European public believes we should speak as a singular entity, ambitious politicians seldom resist fanning the flames of national passions.

The European Council should lead this effort toward federalization and a single global voice, including proposing the requisite changes in the Treaties, even when it may be expected that some countries of the Union may not wish to join this development. Reticence on the part of any state should not deter the will of those who want to follow this path. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Only a United, Federal Europe Can End Its Financial Turmoil
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.