How much Europe can Europe tolerate?

Mar 19,2017 – JORDAN TIMES – Dani Rodrik

This month the European Union will celebrate the 60th anniversary of its founding treaty, the Treaty of Rome, which established the European Economic Community.

There certainly is much to celebrate.

After centuries of war, upheaval and mass killings, Europe is peaceful and democratic.

The EU has brought 11 former Soviet-bloc countries into its fold, successfully guiding their post-communist transitions. And in an age of inequality, EU member countries exhibit the lowest income gaps anywhere in the world.

But these are past achievements.

Today, the union is mired in a deep existential crisis and its future is very much in doubt.

The symptoms are everywhere: Brexit, crushing levels of youth unemployment in Greece and Spain, debt and stagnation in Italy, the rise of populist movements, and a backlash against immigrants and the euro.

They all point to the need for a major overhaul of Europe’s institutions.

So a new white paper on the future of Europe by European Commission President Jean-Claude Juncker comes none too soon.

Juncker sets out five possible paths: carrying on with the current agenda, focusing just on the single market, allowing some countries to move faster than others towards integration, narrowing down the agenda, and pushing ambitiously for uniform and more complete integration.

It is hard not to feel sympathy for Juncker.

With Europe’s politicians preoccupied with their domestic battles and the EU institutions in Brussels a target for popular frustration, he could stick his neck out only so far.

Still, his report is disappointing. It sidesteps the central challenge that the EU must confront and overcome.

If European democracies are to regain their health, economic and political integration cannot remain out of sync.

Either political integration catches up with economic integration, or economic integration needs to be scaled back.

As long as this decision is evaded, the EU will remain dysfunctional.

When confronted with this stark choice, member states are likely to end up in different positions along the continuum of economic-political integration.


The writer, professor of international political economy at Harvard University’s John F. Kennedy School of Government, is the author of “Economics Rules: The Rights and Wrongs of the Dismal Science”. ©Project Syndicate, 2017.

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