Can Europe Survive the Rise of the Rest? –

What does Europe need to do to survive (and thrive)?

The flawed design of the euro zone has made Europe’s recession more acute than America’s, and a collapse of the euro zone would drag the rest of the world economy down with it. But why haven’t Europeans shown the political will to save the euro zone by moving toward closer fiscal and political union? What happened to the forces that drove the project of European unification forward over the last 60 years? And, if those have faded, where might Europeans find new inspiration?

As I recently argued in Foreign Affairs, the five great drivers of European unification since the 1950s have now either disappeared or lost much of their energy.

via Can Europe Survive the Rise of the Rest? –


2 thoughts on “Can Europe Survive the Rise of the Rest? –”

  1. Despite all of the things Europe hasn’t done, they’re trying one more time to save the Euro zone before Spain and Italy fall under with a bold move to have the central bank buy government bonds, a move mad not to fix the problems with the Euro, but simply to buy political leaders more time to fix their macroeconomic conditions. As conditions worsen and border on desperate in the EU, the centralization of monetary control over the region is slowly increasing. EU states already give up a fair amount of sovereignty in order to be members, but will they be willing to continue giving more power to the central bank and other entities? Will the EU infrastructure be sufficiently stable to support the increased power given to it? Whatever the outcome, hope that the results are positive because if the EU crumbles, the rest of the world will be hurting right along with it.

    Here’s an article analyzing the central bank’s move to buy bonds:

  2. An economic and monetary unification has never been easy for the Euro Zone. However, since 1990 they have found their way to maintain it and to make it growth. It is true that the crisis has decreased the credibility and sustainability of the Euro Zone yet; the European Union is still working on making changes that would apply to the rising problems. Jose Manuel Barroso, the president of the European Commission has a new proposal, which will be presented on Wednesday. This new plan attempts to include transferring regulatory overlook of all banks to the European Central Bank. However, this new plan would only be implemented in the bigger banks, which may cause a threat to the European economy. Positive results will have to begin to be seen yet it is a matter of time for the Euro zone to go back on track.

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