Can This Union Be Saved?
July 2nd, 2010 by bfryeThomas Geoghegan, a labor lawyer in Chicago, observed this today in the New York Times:
Ireland was poor and helpless until the European Union came along like a fairy godmother.
The E.U., really Germany, took compassion. It gave Ireland a home in the E.U.: set it up with money, all sorts of subsidies. And what did the Irish do in return? Did they offer grateful novenas?
No. They took a cue from the University of Chicago and the U.S. model: they cut taxes to lure corporate headquarters away from high-tax Germany and France, which were paying high taxes partly to fund the Irish.
His comments are part of a debate about the prevailing sentiment in Europe to start tackling deficits instead of continuing stimulus spending. On the same day, the paper’s Steven Erlanger takes on the issue with a look at the EU leaders, Nicolas Sarkozy and Angela Merkel, who are the most prominent proponents of stimulus and austerity, respectively. Aside from what Erlanger calls their differing “economic conceptions of Europe,” there is this, he writes: “The Germans do not want to finance others in Europe and demand austerity, while the French are unhappy about pension reform and coming, if still vague, budget cuts.”
We’ve been here before, in a way. How many times have commentators pointed out the divisions among European nations on defense policy — even philosophy? Or on their relations with Russia? In those conversations, Germany usually gets the black eye, cast as the country that would sell out an ideal of European unity for a chance to lock in a sweet energy deal with the Kremlin. It was only a year ago that TOL ran a commentary that called Germany Russia’s fifth column within Europe. Not to mention others that bemoaned the continent’s inability to agree on something as fundamental as what its armed forces should be up to.
Certainly the EU has done a great deal of good, especially for countries like Spain and Ireland, which saw their standard of living get a mighty bump after accession. And for its citizens, who (mostly) can travel and work freely across borders.
But if it can’t agree on basic functions of government, and if its decisions invariably leave a large part of the union feeling resentful of the other part, are we alone in wondering if this union can last in the long term?


