An introduction to the book by its author, and Spectrezine
editor, Steve McGiffen
This book was written with two aims in mind: the first might
be summed
up as know your enemy.
Quite
simply,
many people who rail against the EU dont really know
what theyre talking about.
This doesnt mean theyre not right. Most people
who consider themselves pro-Europe are similarly ignorant.
In fact, most people who consider themselves
pro-European would cease to be if they knew the first
thing about the EU. In order to argue effectively against anything,
however, its best to know something about it. Worse, and
this brings me to my second reason for writing this book, in order
to find anything out about the EU, its institutions and decision-making
procedures, you have in general to wade through sewers full of
Europhile nonsense, expressed in the turgid prose at which, for
some reason, such people excel.
So, what we set out to do was provide a usable textbook
or introduction to the European Union for students of politics
or international relations, or for the lay reader who simply wants
to know what is going on. Those expecting a polemic against the
EU will be disappointed. Plenty such diatribes already exist
indeed, Ive written a few myself but here our aim
was quite different. The book is, as its title makes clear, a
guide to the European Union, a critical
guide.
Between its covers you will certainly find plenty of criticism of the European Union
and its policies, as well as attempts to answer the Europhile
case, such as it is. You
will also find clear explanations of each of the major treaties,
the institutions, and legislative procedures. If you dont
know your Council of Europe from your European Council, why the
word conciliation sends shivers down the spine of
European parliament officials, or how many votes Luxembourg has
under QMV, this is the book for you. That is, if, of course, for
some reason, you want to know these things
.
Having dealt with the sometimes labyrinthine structures
and Byzantine goings on which accompany them, The European Union: A Critical Guide goes on to look at the major
policy areas currently occupying the time of Eurocrats in Brussels
and beyond. In separate chapters, the book explains and analyses
EU enlargement, the Common Foreign and Security Policy (CFSP),
Citizenship, Justice and Home Affairs, the euro, the
internal market, economic relations with non-members, employment
and social policy, the environment, public health and consumer
protection, the Common Agricultural and Common Fisheries Policies
(CAP and CFP), transport, regional policy, and finally industrial
policy and energy.
If you want to buy the book, you can order it from your
local bookshop or go to the publishers website . If youre too poor to do that, order it from your
public library.
Below, to give you a flavour of what youll be
missing if you dont buy, borrow or, well, in some other
way acquire a copy of Steven P.McGiffen The
European Union: A Critical Guide (Pluto Press, £11.99), we
publish a couple of extracts.
Chapter
6
- The Common Foreign and
Security Policy
Before Maastricht, the European Community had no real
official foreign policy and though foreign ministers of the member
states met regularly, they did not do so as the Council but under
the aegis of the elaborately-titled Foreign Ministers Meeting
in Political Cooperation, with no formal powers. With the end
of the Cold War pressures had mounted to abandon the virtual taboo
on moves towards a genuinely common foreign policy. Once again,
the collapse of the Soviet Union changed everything. When foreign
and defence policy were developed within the context of a bipolar
world, attitudes to the two superpowers were all-important
and amongst EC member states they differed considerably.
Britain was loyally pro-American, France more even-handed,
and West Germany had still, to some extent, to do as it was told.
Then, in the nineties, there was suddenly only one superpower.
There were those who dreamed that a united Europe might
make it two. Some of the political leaders who flaunt their newly-discovered
European credentials as if they were marks of a pacific
and well-meaning internationalism are in fact what used to be
called Great Power Chauvinists: in place of an all-conquering
France, Germany or Britain they favour a strong multinational
Greater Europe, with its own army and a relationship with the
United States which would recreate the kind of wary respect with
which the nineteenth century Powers eyed each other across the
negotiating table. On
the other hand, there are elements in the United States which
have welcomed the possibility that Europe might at
last be able to pay its own defence bills. With the USSR out of
the way, large sections of American opinion began to wonder why
GIs had to be stationed in Europe at all.
From Yugoslavia to Amsterdam
In the 1990s,
as change in Central and Eastern Europe gave way to chaos and
war, the argument was increasingly heard that if Europe
wanted to be taken seriously it must develop an independent capability
to respond politically, diplomatically and ultimately militarily
to crises on its own borders. The break up of Yugoslavia
and the subsequent horrors in Croatia, Bosnia and most recently
Kosovo amplified these calls.
The result was Maastrichts creation of the
Second Pillar and the replacement of Political Cooperation by
a Common Foreign and Security Policy (CFSP). In the urgent context
created by the violent disintegration of Yugoslavia.
Amsterdam attempted to go further than this, to bring the
dream of a united and assertive Europe closer, by
extending majority voting in certain areas of foreign policy and,
most strikingly perhaps, by providing for the appointment of a
High Representative for the CFSP. In 1999, the first appointee
to this post, former NATO general secretary Javier Solana Madariaga,
the man who had presided over the bombing of Yugoslavia, took
office.
In addition, the Amsterdam Treaty provided for the formulation
of a common defence force, though not immediately. The Treaty
merely empowered the Council to set up such a force should it
wish to do so, a decision which must, however, be ratified by
every member state. A long-standing
but largely moribund defence cooperation organisation, the Western
European Union, became, in effect, the military wing of the EU,
with responsibility to draw up and put into practice any decisions with defence implications. Official integration of
the WEU into the Union could occur, but again only if ratified
by all member states.
By deepening the foreign and defence policy role of
the EU, Amsterdam sharpened the Unions military aspects.
Its provisions represented a further erosion of the autonomy of
the member states, including most disturbingly the four
Austria, Finland, Ireland and Sweden which had long been
neutral. The Treaty made such neutrality difficult if not untenable.
It has been argued that the position of neutral member
states is protected by Article J7(1) which states that
The policy of the Union in accordance with this Article
shall not prejudice the specific character of the security and
defence policy of certain Member States and shall respect the
obligations of certain Member States, which see their common defence
realised in NATO, under the North Atlantic Treaty, and be compatible
with the Common Security and Defence Policy established within
that framework. In fact, a careful reading of this Article
in the context of the rest of the Treaty demonstrates that it
is the latter part of this clause which carries the punch. J7(1)
is there to reassure NATO that an emerging EU defence policy will
complement, rather than undermine, its own for which read
the USAs hegemonic role. This is of particular concern
to the UK, the second biggest contributor to NATO and the United
States most reliable European ally, or, if you prefer, lapdog.
The fact that one of its open aims was to promote the
co-ordination of armaments manufacture is a blatant demonstration
that the EUs much-vaunted commitment to peace comes with
strings, if not a burning fuse, attached. Recognition of the special,
highly political and therefore partly extra-commercial nature
of the weapons industry had been under pressure for some time
before Amsterdam, both from outright militarists and from those
who could not bear to see a sector worth £40 billion a year
fully 2% of EU industrial production, and a workforce of around
a million treated as anything other than just another industry
whose competitiveness needed enhancing in the face of growing
market pressure from the US and others. As former Industry Commissioner
Martin Bangemann said shortly before the Amsterdam Summit, The
fragmented nature of the European defence industry clearly gives
it a competitive disadvantage. Amsterdam changed the institutional
balance of power, allowing the Union and not the Maastricht
formulations Union and its Member States to define and implement a common foreign
and security policy. In
addition, the Treaty states that the European Council shall
define the principles of and general guidelines for the CFSP,
including for matters with defence implications (authors
italics). The post-Amsterdam CFSP includes the progressive
(instead of Maastricht's eventual) framing of a common
defence policy, in accordance with the WEU.
Moreover, Amsterdam integrates the WEU's responsibility
for humanitarian and rescue tasks, peacekeeping tasks and
tasks of combat forces in crisis management, including peacemaking
- known as the Petersberg tasks after the place where they were
originally formulated
into the EU. Whilst the
Petersberg tasks may well include worthy and genuinely humanitarian
missions, their definition is so wide and vague as to allow almost
anything. We live, after all, in the age of humanitarian
bombing. If NATO believes that ariel bombardment of civilian
populations can be defined as one of the legitimate (t)asks
of combat forces in crisis management, including peacemaking
then the EU and WEU are hardly likely to differ. Moreover, the
Treatys wording, that the common defence policy shall
include the Petersberg tasks, implies that there is nothing
to prevent the EU from doing whatever else it may choose. >
In case anyone
was left in any doubt as to what was intended, the fifteen heads
of state and government, together with the President of the European
Commission, responded to the Kosovo crisis and subsequent NATO
bombardment by declaring, at a European Council meeting held in
June, 1999, that the Union must have the capacity for autonomous
action, backed up by credible military forces, the means to decide
to use them, and a readiness to do so, in order to respond to
international crises without prejudice to action by NATO. Such actions would include, but not be limited
to humanitarian and rescue missions, crisis management, and peacemaking.
How the CFSP works
Common foreign and security policy (CFSP) is governed
by the provisions of Title V of the Treaty on European Union.
The Maastricht Treaty established a three pillar structure, and
Title V constitutes one of the three pillars of the
European Union, the others being the European Community and Justice
and Home Affairs. Decisions were initially by unanimity, and the
Commission, Parliament and ECJ had no competence. Since Amsterdam,
however, measures may be adopted by QMV. A state may, however,
register a constructive abstention, which may include
opting out of the action or policy decided upon; or it can use
the power of veto, in which case the matter may be referred to
the European Council if the member states decide by QMV that they
wish to do so. The Commission now has a limited role, mainly in
policy implementation.
The European Council
is also empowered to define a Common Strategy governing
the CFSP approach of the Union in regard to a particular problem.
Once a Common Strategy has been defined, it is implemented by
the Council of Ministers which is able to take decisions under
it using QMV.
The Council is assisted by a High Representative for
the CFSP who may also speak for the EU if asked to do so by the
Presidency country. The High Representative is in turn assisted
by a Planning and Early Warning Unit The Unit's tasks are to
·
monitor
developments in areas relevant to the CFSP;
·
provide
assessments of the Union's foreign and security policy interests
and identify areas on which the CFSP should focus
·
provide
timely assessments and early warning of events, potential political
crises and situations that might have significant repercussions
on the CFSP;
·
produce
reasoned policy option papers for the Council
The CFSP opens the way for the EU to develop a common
defence, including joint armed forces, should the European Council
decide it; and it allows for the integration of the Western European
Union (WEU) - the defence organisation which brings together European
NATO members - into the European Union.
Common
(Market) values?
The arguments in favour of CFSP, and, by implication,
of a European Union military capability, are straightforward.
The EU is a strong economic presence in the world, which gives
it political interests which must be promoted. Together, the EU
and its member states account for more than 50% of both international
development aid and humanitarian aid, a third of aid to the middle
east and almost 60% of that which goes to the former Soviet Union.
In addition, as we saw in the last chapter, the member
states are the major trading partners of their neighbours to the
east.
As the CFSPs own website puts it, The Union
must defend the values common to the Fifteen, its fundamental
interests, its independence and its security. It must be capable
of meeting multiple threats, such as the proliferation of weapons
of mass destruction, arms trafficking, contraband nuclear material,
fundamentalism and extremism. The emergence of local conflicts,
or wars, as in former Yugoslavia, can also destabilise neighbouring
States.
As with so many
aspects of the European Union, what tends to irritate opponents
of the CFSP, or, as they see it, militarisation is
the pretence that what is being defended is a common set of values
and interests to which all Europeans, and indeed all civilised
or decent people, automatically and unquestioningly subscribe.
Whether such values can be said to exist at all is a matter of
intense philosophical debate and speculation, though never amongst
the EUs ruling elites. That they might include a particular
version of the market economy is, to say the least, questionable.
Chapter 17 - Conclusion
My ambitions in writing this book
were two-fold. Firstly, I wanted to provide students with a basic
guide to how the European Union functions. There are plenty of
these around already, of course, but they are invariably written
by people with a vested interest in spreading the integrationist
gospel. This can make them quite painful to read, but it also
distorts what they have to say. Certain arguments such
as that Qualified Majority Voting is inherently undemocratic,
or that all sorts of feasible alternatives to this European Union
exist are deemed unworthy of consideration and simply ignored.
For this writer, they go to the heart of the matter and, whatever
side of the fence you eventually land on, no meaningful analysis
of the EU is possible until they have been dealt with.
My second aim
was to present a critique of the EU and its integrationist project
which attempts to get right away from the question of nationalism
and internationalism. I have written this book as an Englishman
who lives in Belgium and works for an international organisation,
representing a Dutch political party on the secretariat of the
United Left Group in the European Parliament. Like most left-minded
people of my generation I associate the Union Jack and flag of
St George with fascist demonstrators. I believe nationalism to
be the religion of fools and a major weapon in the armoury of
charlatans. Yet I have no more time for European nationalists
than I do for any other kind. The sight of adults waving flags is generally
an unedifying spectacle, whatever symbols appear on them. On the
other hand, the fact that decisions should be taken as close to
home as possible, that the further away in distance and culture
decision-making bodies become, the greater advantage to the rich
lobbyist, these are sound reasons for defending the rights of
national parliaments to do what they are supposed to do: express
the will of the people. The fact that they do this imperfectly
is inarguable; but the European Parliament, the Committee of the
Regions, the Economic and Social Committee -
none of these expresses any will other than its own.
Culturally, nationalism
is a dead end and the world deserves to be the oyster of all of
us. European nationalism, as promoted by the self-styled
pro-Europeans, is no different to any other kind.
Whether you prefer Goethe to Shakespeare or Chimay to Guinness
does not have the slightest bearing on the problems we have to
tackle in an attempt to understand the EU and what it is up to.
Time and again we see reforms, carried
out in the name of economic integrationism, which undermine political
democracy; countries admitted to the Union following referenda
in which the Yes campaigns propaganda consists
of lies, half-truths and irrelevancies; the militarisation of
a Union which is supposedly being constructed in the
name of peace; the inflicting on people of an unwanted and bogus
citizenship over which none of the citizens
has been so much as consulted. Monetary union, which threatens chaos and disruption
to the sole benefit of multi-national corporations, is sold to
people in the most facile way, with no explanation as to what
it really means and no admission of what it is really for.
Successive summits attempt to convince us that a system
which has kept unemployment high for decades can be transformed
into a job creation machine, though of course we may have to give
up a few social rights to achieve the promised land of full employment.
A Community responsible for the Common Agricultural Policy, certainly
the biggest single cause of environmental degradation in western
Europe since the war, now presents itself as a champion of the
environment. And so on.
Try as I might, I have been unable to identify a single policy
area in which the Treaty of Rome has had a beneficial effect.
Everything the EU does is either undesirable or could have been
better achieved by other means.
The European Union
is a technocratic project. That is to say that it is based on
the premise that politicians can no longer be trusted with macro-economic
policy. Neither they nor we, the people who elect them, understand
it well enough. It must be left to specialists, to bankers, whom
we are expected to believe are above the sectional interests which
motivate the rest of us. The fact that the European Central Bank
is answerable to no-one, or that Qualified Majority Voting means
that laws can be imposed on people against their express wishes
and over the heads of their elected representatives are small
prices to pay for greater efficiency.
Technocracy has
always done this, exploited the notorious inefficiency
of democracy to undermine peoples confidence in themselves
and their ability to run their own societies. If you agree that
all decisions should be taken by experts as far removed
as possible from popular accountability then the European Union
of the Maastricht Treaty is precisely what you want. But if you
believe in free cooperation between democratic nations then that
same Treaty removed whatever space the Treaty of Rome had allowed
for such a system to develop.
Effective resistance
is possible. In order to defend what is left of democracy, to
make a genuine internationalism possible, and create real alternatives
for tackling the urgent problems facing all of our nations, we
must first leave all the flags at home, forget about whose picture
is on our money, and make a bonfire of all those national myths
we were force fed as children. Instead, look at the EUs
policies and just how they are made. I have tried to make this
book, with its bibliographies, a starting point for doing just
that. Unless you happen to be the CEO of a multi-national corporation,
I believe that you will find that only one conclusion is possible.
In each chapter of this book you
will find reasons, I believe, to question whether the EU in its
present form is really the best approach to governance in the
21st century. Having spent the last fifteen years working
within one of its institutions (the European Parliament), I have
seen nothing to disabuse me of the view that the integrationist
project serves only one agenda that of the multi-national
corporations (MNCs) whose growing hegemony of power at all levels
threatens everything that has been gained by people in developed
countries over the last two centuries: democratic rights and freedoms,
economic security, the chance to live a dignified, productive,
fulfilling life. These chances are now denied to a greater or
lesser extent to growing numbers of people, whilst for most in
the underdeveloped world they are further away than ever.
Numerous impulses
fed into the original drive to establish the European Economic
Community: the desire for a sustainable peace and the fear that
France-German rivalry would once again destabilise the continent
was certainly one of them. In the main, however, the Treaty of
Rome set out to make western Europe safe for capitalism, and in
particular for the biggest corporations, which wanted a domestic
market comparable to that available to their American rivals.
Since then, the
power of corporations has grown, and that of other social forces
diminished. This is reflected in the four major treaties
the Single European Act, and those of Maastricht, Amsterdam, and
Nice which have carried integration ever further since
the mid-1980s. Of course, other influences can be detected: the
hesitancy of some member state governments when it comes to handing
over power to supra-national institutions; a cultural conservatism
growing from the continuing power of Christianity (of various
brands) in European social life; even, here and there, the aspirations
of ordinary
men and women. The consistent theme, however, is that whats
good for business is good for everyone, and whats good for
business, of course, is to be able to make profit with as few
restraints as possible even where these restraints involve
the wellbeing of the environment or the people and other beings
which inhabit it.
The so-called
Washington Consensus, which has dominated the theory and practice
of big capital and its political servants for almost two decades,
is that government expenditure as a proportion of GDP must be
reduced, whilst the influence of the state gives way to the free
play of market forces. The corollaries of this idea, which
lies at the heart of what is now known as neo-liberalism
are far-reaching. Firstly, it means that the state must withdraw
from most spheres of economic activity. Nationalised industries
must be sold off (in reality, most have been virtually given away).
Where the market proves truly unable to provide a necessary service,
you first question its necessity: thus, public transport no longer
exists in huge stretches of rural and small-town America, because
well, everyone has a car and if you do provide buses nobody uses
them. Universal postal services are no longer needed because it
makes more sense to ensure that everyone has email. And if people
with more money can buy better food or a bigger car, why shouldnt
they also spend their money on health care, or education, or even
having themselves or their children genetically modified so that
they are brighter, taller, more beautiful than the rest?
Even to pose such
questions demonstrates a moral bankruptcy and egotism which was
once confined, at least publicly, to the fringes of the right
but which is now almost commonplace. The case for the market
is now rarely put - in, for example, the European Parliament,:
it is simply assumed; and with each successive revision of the
Treaty, that assumption is carried further and deeper. Yet it
rests, when examined, on the shakiest of foundations. Privatisation
is necessary, we are told, because state-run enterprises are inefficient.
Yet there is no weight of evidence in favour of this view, and
none is regarded as necessary. A political viewpoint which once
had to compete with others now has the field to itself, transformed
into a self-evident truth.
It is a truth which guides
the behaviour of the great institutions which run the system at
global level the IMF, World Bank, WTO and so on
and in huge regions: NAFTA for North America, Mercosur
for Latin America, ASEAN for the far east and the European Union
for a growing area of Europe. Of these, the EU is by far the most
highly developed, and the one whose agenda most closely resembles
that of the WTO. Yet the World Trade Organisation is greeted with
universal hostility by those on the left of politics or in the
green movement, whilst resistance to the EU is seen, if only in
the English-speaking world, as anti-internationalist and inward-looking.
Let me then finish by summarising why, as someone whose
thinking and practice have been shaped by the traditions of the
anti-capitalist left, I am also an opponent of this European Union.
Firstly, its institutions and their basis in the Treaty
of Rome and its amending treaties, remove power ever further from
the people. The policies pursued by member state governments are
increasingly constrained by EU rules which oblige them to impose
a free market logic on ever-broader areas of the economy.
Decisions are taken by remote institutions the European
Central Bank, the European Commission, the Court of Justice
which are unelected and, with the partial exception of the Commission,
not answerable to anyone who is elected. This means that the ballot
box no longer offers a way to bring about any fundamental change
in the direction of policy. The
Council of Ministers, which at least represents elected governments,
meets behind close doors and has the power, in more and more instances,
to impose policies on peoples whose parliaments have never been
given the chance to approve or disapprove them. The European Parliament
is so remote an institution that a slight majority of the EU electorate
does not bother to exercise its right to vote in elections to
it. The idea, still current in anti-EU circles, that the EP is
a talking shop with no real power is outdated. Yet the increase
in its powers has done nothing to democratise the Union, because
its growing powers have been gained at the expense not of the
Unions unelected authorities but by further reducing those
of the member states and their parliaments. Furthermore, its remoteness
(and that of the Commission), in both geographic and cultural
terms, from the lives of the vast majority of citizens tilts the
balance of influence away from popular institutions and democratic
civil society and towards big corporations. It is the multi-nationals
which have the resources to keep up a permanent lobbying clamour
in Brussels and Strasbourg, a degree and style of pressure which
is utterly disrespectful to the democratic process and ultimately
subversive of it. From top to bottom the Commission and Parliament
are imbued with such an elitist, technocratic worldview that they
are not even aware of it. Despite
valiant efforts from environmentalist, social and other NGOs,
legislation which furthers the interests of the people rather
than those of corporate capital almost never appears except as
a result of one of two things: a crisis, such as the BSE scandal,
which threatens to destroy hundreds of thousands of livelihoods
and clearly had no other cause than an astonishing elitist arrogance,
can provoke emergency action which may or may not include an effective
remedy; or the need to mediate between competing national industries
can lead to higher standards of, say, health and safety in the
workplace, being imposed upon lagging countries. It would be overly
pessimistic to say that sustained campaigning can never gain anything
without one of these circumstances being present; and it would
be wrong to pretend that national political institutions represent
some ideal of democracy. What is certainly true, however, is that
the EU has removed power from national institutions which can
be understood, talked to and influenced, to a labyrinth of remote
bodies in faraway places.
These aspects of the Union have their effects across
the board of policies and programmes for which it is responsible.
Enlargement of the EU is not a means of bringing the two formerly
divided halves of Europe into a harmonious whole; on the contrary,
it is the latest of the spoils of what was proclaimed as the Wests
victory in the Cold War. Democracy was, it is true,
much more in evidence to the west of the Iron Curtain than it
was in the Eastern bloc. Until the dying days of
the Soviet system, however, democracy was defined in large
part as a political system which allowed people to choose between
competing economic systems: market-based capitalism, state socialism,
a mixed economy on social democratic lines, or some combination
of these. Freedom of expression, of the press, of assembly and so on, were
secondary to this, necessary because clearly political democracy
cannot function without them. Now, however, these freedoms, together
with a multi-party parliamentary system, are the very definition
of democracy, which is the automatic and unvarying political adjunct
of a free market economy. Countries which lived in former times
in the shadow of the USSR are now free to join the
European Union and adopt a particular, somewhat extreme version
of market capitalism as their economic system. Once in, their
electorates will have no opportunity to change this system through
constitutional means. Of course, they may stay outside the EU
and the WTO, but if they do so no-one will trade with them. They
will therefore almost certainly opt to join, hoping that the corrupt,
chaotic, nepotistic and gangsterish version of capitalism which
has replaced repressive state socialism will somehow be modified
by being in Europe.
Meanwhile, should
absorption of all of the countries to its immediate east not come
off, or to police the new Iron Curtain which will be erected if
and when it does, the Union, this supposed guarantee of peace,
steadily develops a military capability. If the system through
which other policies are determined leaves a lot, from a democratic
viewpoint, to be desired, the Common Foreign and Security Policy
must take the prize. Based on an assumption that there exist such
things as common European values, and that fundamental to these
is the market economy, the CFSP is designed to allow
the establishment of an EU armed force to protect the economic
and political interests of the Unions most powerful member
states. This is what is meant by stability, of course: a framework in which foreign corporations
can make money. Together with the promotion of a vibrant, competitive
arms industry this is the CFSPs purpose.
The EU is also
about maintaining internal order, as is clear from a reading of
the Treaty of Amsterdam and much, most of it supportive, that
has been written since that Treaty was signed. The Third
Pillar tentatively introduced at Maastricht and hugely reinforced
in Amsterdam represents a major inroad into what have been, after
foreign policy, the most jealously guarded national competences:
justice, the criminal law, immigration and refugee policy, and
other aspects of what are tellingly known as home affairs.
Again, decisions are taken in an atmosphere of secrecy and elected
assemblies at national and EU level excluded from the process.
Bogus conceptions of citizenship are written into the Treaty,
a meaningless Charter of Citizens Rights agreed which imposes
absolutely no new obligations on any of its signatories, and thus
a blank cheque written to the future. What the Union will require
of us now we are all its citizens is, of course, unknown, but
when such decisions are taken we will have no involvement in them.
Probably the biggest
single act of subversion of democracy committed in the name of
the European Union has been the establishment of the single currency,
the euro. The Maastricht Treatys convergence criteria for
admission to the single currency and the rules for participation
exactly follow the Washington consensus, obliging member states
to respect very narrow, arbitrarily established limits on public
borrowing and debt, to submit to a common interest rate which
may be utterly inimical to their actual needs, and to prioritise
low inflation as a policy target: to follow, in other words, a
particular idea of fiscal prudence. These rules are impervious
to electoral change, and they are imposed by an unelected board
of central bankers, possibly the narrowest ruling elite in history.
Macro-economic policy before the euro was decided by elected politicians
and central banks which were, in most countries, directly answerable
to them. Since the introduction of the single currency it is determined
by a Central Bank constitutionally defined as independent,
one which those same elected politicians are forbidden by the
Treaty even to seek to influence. Interesting choice of word,
that independent. In the context it means that it
is able to operate entirely free of any constitutionally-sanctioned
interference from the people or their elected representatives,
yet I have yet to see it used to describe Stalin, or Hitler, or
the Sultan of Brunei. The defence, of course, of this dictatorial
system is that ordinary people and politicians simply dont
understand how the economy works and would get it all wrong. This
attitude, known as technocratic, can, of course, equally
be applied to other areas of policy, for what do non-specialists
know about how to run a school or a hospital, about whether bio-technologies
are safe, whether that new motorway is really needed or that forest
really did have to be felled? Macro-economics is not in any obvious
way a more difficult discipline than ecology, or health care economics,
or plant biology; so why not apply the same logic to them and
let experts decide everything?
The answer, of course, is that in democratic
societies the people, and even the politicians, being ordinary
mortals with limited knowledge and specialisms, cannot possibly
decide every aspect of policy. What they can do, however, and
what democracy, when it is genuine and functioning, allows them
to do, is to establish policy goals. It is then the task of experts
to work out how such goals can be achieved. It is precisely this
right which the single currency, and the single internal market
which it was designed, in part, to underpin, remove from the peoples
of the member states.
In its relationships with the rest
of the world, where its highly selective commitment to free trade
and its protectionism in defence of EU-based industries have contributed
much to the underdevelopment which has afflicted many of its poorer
trading partners in the last three decades, the Union demonstrates
a merely rhetorical awareness of the imbalance of power between
North and South and the dangers this holds for both. In reality,
it acts quite unrestrainedly in pursuit of the short-term interests
of European owners of capital.
Its employment and social policies
have been entirely ineffective in reducing either unemployment
or the growing social divide, which interestingly has been most
marked in what are seen as the most successful economies,
those in which growth has been most rapid and sustained, the Netherlands
and Ireland. Its much-vaunted environmental policies have done
little or nothing to redress the damage wrought by Common Agricultural,
Transport and Fisheries Policies, the last of which may just take
the prize for the most disastrous of EU measures, though competition
is stiff.
The
integrationist answer to everything is invariably ever greater
transfer of power from nation state to Union institution. The
method is to take an obvious statement that environmental
problems require cross-border solutions; that the globalised economy
demands international co-operation if it is not to be controlled
by the unrestrained, beyond-the-law actions of corporate cowboys;
that a large market and a unified currency hold advantages
and draw from it plausible sounding but specious conclusions.
Simply because an international approach to the problems
facing humanity in the twenty first century does not mean that
this international approach, this European Union, a single currency
based on discredited and extreme monetarist principles, a political
system which seems almost designed to maximise corruption and
the hegemony of wealthy elites, are the only or best forms of
international co-operation on offer.
If we are to develop
genuinely international institutions which enable cooperation
to take place whilst preserving the democratic rights of the peoples
of different nations, then we must set about a root-and-branch
re-examination and reconstruction of global governance. What cannot
be reformed should be discarded, and what can be put to the service
of the people should be. The European Union in its present form
is an obstacle to real co-operation across borders of language,
culture and history. Its likely result is an ever-growing divide
between those who exercise power and those who must suffer the
consequences of decisions taken by them.
Though this may be the intention of some involved in the
integrationist project, they are unlikely to enjoy the consequences. A people denied peaceful means to bring about change can become
apathetic, but sometimes it reacts in quite a different way. They have even been known to dissolve long-standing
Unions, reject the counsel of technocrats, and tear down walls.
© Steven P.McGiffen, 2001 Please note that, unlike almost everything on this site, the above
extracts are copyright. If you wish to publish any extract from
them, please contact the author at smcgiffen@europarl.eu.int
To buy the book go to: The
European Union: A Critical Guide
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