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Europe is now stronger than ever

15 November 2009 - Issue : 860


On the 20th anniversary of the fall of the Berlin Wall - a simple fence but of paramount geopolitical impact - the old, but not at all tired European continent, can flatter itself and say to the rest of the world, that with its decisiveness, its ability, its mental powers and the philosophy of peace deeply embedded in its peoples after the carnage of WWII, that the EU has managed to dissolve the Warsaw Pact without guns. The conflicts in ex-Yugoslavia did not stem from main European issues and did not expand to the European heartlands. At the end, the European Union managed to accomplish peacefully the task of embarrassing the eight central European republics, which emerged from the breaking of the Warsaw Pact. The Union has now accomplished the task of introducing a real EU Constitution, after the approval of the Lisbon Treaty. Let us look at the accomplishments in retrospect.
During the past 20 years, despite the difficulties in supporting the development of the European regions which emerged devastated from 40 years of communism, the European Union, spearheaded by the Eurozone, has managed to break up the supremacy of the dollar by introducing its common currency. The huge national debt issues through sales of state bonds, that the euro made possible, have and will continue to finance the rehabilitation of the ex-Communist countries and regions.
The same tactics were used by the European Central Bank, in helping the commercial banking sector of the Eurozone, to overcome the last credit crisis, through low cost direct finance (interest rate 1%.) The issue of such vast liquidity would have been unimaginable had each Eurozone country tried it by itself. Even Germany would have found it impossible. At the end of the day it was also Britain, a real EU outsider, which was also favored by euro liquidity and the British banks were saved officially by the London government and officiously by Eurozone financing.
In short, the European Union has managed over the past 20 years to become a world economic and political power, without the use of military force. This success did not come cheaply. The 16 Member States of the Eurozone had not only to concede their monetary sovereignty to the European Central Bank, but also conceded the broad lines of their fiscal and economic policies as well. As for all the 27 Member States of the EU, the introduction of the Lisbon Treat means that they have to transfer to Brussels another large part of their sovereignty.
At this point, however, one can redraw the outer borders of the EU, easily leaving out Britain and the Czech Republic. This very strong statement is based on very substantial arguments. Those two countries have managed to acquire for themselves, by addendums to the Lisbon Treaty, the opt-out clause when it comes to crucial matters.
This means that they do not respect the main principle of the Union, which is not included in any of the Treaties. And very simply this principle is the decisiveness of all the European peoples to live together. Plainly, Britain and the Czech Republic actually cherish more their Atlantic alliance and do not value the common EU cause. We will not be surprised if during the coming years, one or both will leave the European Union. Now this is possible. For Britain, this prospect is understandable. For one thing, the UK cannot support its people without the Pound Sterling and it cannot support the existence of this money as a member of the Union. The Pound is in itself a means of “production.” Its value is not based on economic production but on political grounds. In any case, 20 years after the fall of the Berlin Wall, the European Union is stronger than ever, despite the efforts by the British and the Czechs to stain the new EU Treaty.

 


 

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