The European Union - Dilemmas, Asymmetries and Equilibria of European Integration

The European Union - Dilemmas, Asymmetries and Equilibria of European Integration

The European Union has been vacillating between a Federation and a Common- wealth approach. An unpleasant situation has evolved, where all participants feel they are cheated: large States think their smaller partners wield disproportionate clout, small States fear their marginalisation. No system of checks-and-balances seems to exist e.g. in the field of Monetary Union. Moreover, no real solution has been proposed for the difference in development levels within the ever-closer Union and no credible equilibrium has been sought between the competitivity race on one hand and a «social profile» for the Union on the other. A series of re-equilibrations has to occur in Europe for the future to happen without shocks.

Whatever shines is not made of gold

The long-winded negotiations of the IGC ad the much-hailed Amsterdam Treaty have brought little change to the European Parliament. One technical point, though, may lead to an important future shift in priorities. The maximum number of EuroMPs has been fixed at 700; thus if enlargement takes place as expected, the number of sitting EuroMPs of present EU members will have to shrink. For a country like Greece, this would give 21-22 members instead of the present 25. This should lead to a more rational choise of postings on the part of EuroMPs, who have been neglecting useful and even powerful Committees so as to sit on more decorative functions.

EU: Greece Admitted As Member Of Euro Common Currency

Greece thus becomes the 12th member of the currency union, and the first to join since the project was launched just 18 months ago. Greeks are jubilant, saying the move represents a recognition of the economic maturity achieved by their country.

Athens-based media commentator Andreas Papageorgopoulos, who was at the summit site in Porto, put it this way: "For Greece it's a big day, it proves that the Greek people through their government in the last few years have achieved an enormous task. They have overcome a number of obstacles, and now we are not at the door of Europe, but virtually inside."

But not everybody views the Greek accession as positive. The infant euro has had a hard time since its inception, losing almost a quarter of its value against the U.S. dollar because of lack of investor confidence. German bankers and financiers, in particular, have been outspoken in their belief that including in the euro Greece, a country traditionally plagued by economic problems, would send the wrong signal to the markets.