Saturday, November 18, 2017

The need for real EU reform

I am getting more and more convinced that the EU needs to reformed - although I am still a bit puzzled whether and how that could work out.

The first problem of the EU is that the benefits flow to a small number of countries - the most important of which is Germany. Some other countries - such as Bulgaria - become more and more marginalized. The young emigrate and real development doesn't happen. The ideology of the EU used to be that just building infrastructure would be enough to modernize these countries, but it doesn't happen. Of course this is not only a problem of the EU: America has its "fly-over country" and in some of the richter countries of the EU you see areas too where people and companies are leaving.

The main cause is the present idea of capitalism that leaves national governments very little freedom to have an economic policy and that gives a lot of power to business interests. That will need to change. Government need a lot more freedom to set their own economic policies. And please save me the complaints about "unfair competition": the present system is unfair.

The second problem is what I consider Brusselian mobsterism. Brussel has a lot of power and it isn't shy of using that in the most brutal way. The first case was when it closed the banks in Cyprus to force the Cyprus government to do its bidding. The second case when it repeatedly threatened to do the same in Greece to force it to accept its solutions for the Greek debt crisis. And now we have Brexit and we see the same behavior. Now the threat is that there will be no agreement and that one day British companies will just lose their access to the EU market. Just as with Greece EU representatives regularly refuse to negotiate - using all kinds of excuses - the most common being now that first the financial aspect of Brexit needs to be settled. Of course that is nonsense - all things are related. But this mobster behavior - that makes one ashamed to be an European - is considered normal in Brussels.

This kind of behavior makes a farce of the right to leave the EU. It basically tells everyone to do what Brussels dictates - or else... I believe that the only solution is make "Europe a la carte" a much more explicit concept. Such a concept should explicitly leave countries free to choose whether they want to be part of the eurozone and should even impose on the obligation on the EU to help countries that want to leave the eurozone to do that with as little trouble as possible. Britain should have had the right to refuse refugees - what would have taken away the need for the Brexit.

The concept should also extend to the countries that are now outside the EU. The way that the EU now uses its economic power to force countries outside its borders to do its bidding is shameful. Instead countries should be able to become part of the EU for only some aspects.

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