EU Commission president Ursula Von der Leyen at Davos. Picture; Laurent Gillieron
To European Commission president Ursula von der Leyen, Europe is like a Volkswagen Beetle – an iconic car produced by a once-mighty German manufacturer which has been struggling to adapt to a new world.
“Europe must shift gears,” she urged in a speech to business executives gathered in Davos, Switzerland at the beginning of the year. Yet, her call to arms failed to raise more than an eyebrow. After all, she has repeated the same call many times since she was elected six years ago. So far, there has been little result.
The US president, Donald Trump, may now even be tempted to finish off the EU (the most developed of the world’s multilateral organisations) by dividing its members over the single market for trade. This arrangement is the cornerstone upon which the union was built, but can it withstand Trump’s attempts to play European nations off against each other in order to get the best deal for himself?
The problem is that Trump is simply bringing to its most extreme consequences the weakness of a system that was built for stable times which are long gone. We urgently need a new idea, and it cannot be for a “United States of Europe”. That is a dream from the past that could not be more at odds with Europe’s current political climate.
Europe is unable to chart a path forward because it needs unanimity among its member states in order to make any major decision. Votes are not even weighted to reflect the different sizes of each of the club’s members.
This is a weakness that would gradually cause the deterioration of any international organisation. But in the case of the EU, the crisis is more serious because member states have surrendered part of their decision power. As a result, if the EU cannot move quickly, even member states turn out to be paralysed.
Viktor Orbán, the prime minister of Hungary, has often been singled out as the bad guy especially – this has happened every time the EU has tried to approve sanctions against Russia or aid to Ukraine. But examples of free riding abound even among the founding parties.
For decades, France has resisted any attempt to reorganise the common agricultural policy that sends a third of the EU’s budget to farmers, many of them French. Italy has halted the ratification of the reform of the European stability mechanism that should protect states from financial instability, out of the assumption among part of the Italian electorate that this may compromise further sovereignty.
Elsewhere, Germany’s constitutional court has derailed the reform of the EU electoral law that divides the election of the European parliament into a dysfunctional system of 27 national contests, because of the resistance of the German political system to any electoral law which is not proportional.
We need to find a way to change all this. And the solution cannot be the rather abstract idea of a union that proceeds at different speeds, where the older members are supposed to be part of an inner circle. Nor is it feasible to expect the abolition of unanimous voting for the simple reason that to forgo unanimity, you need a unanimous vote.
Instead, the EU should become the coordinator of multiple unions, each formed by the member states themselves around specific policies. A union might form around defence, for example, among member states which are ready for such a partnership, such as Poland, the Baltics and Finland.
Another might bring together countries that wish to collaborate on large projects such as a pan-European high-speed train, or a fully integrated energy market that may allow Italy, France and Spain to save billions of euros and decarbonise more quickly.
This is not entirely new. Arrangements like the euro and the free circulation of people (the Schengen area) follow this principle. Only a subset of EU nations are part of these projects, and offers have even been extended to join beyond the EU’s borders. Monaco is in the euro, for example, while Norway is in Schengen, despite neither being an EU member state.
The problem with these unions is that they are incomplete. The complement to the monetary union is a recently reformed “stability pact” that leaves so many loopholes that 11 out of its 20 members do not comply. And even within Schengen, there are still no proper common borders. The result is continuous reciprocal accusations of exporting each other’s illegal migrants.
The solution here is to fully share the levers within a certain policy area on terms which are more flexible and voluntary for the union’s members.
Resilience is achieved through adaptability. Therefore, these new arrangements must make divorce between union members possible from the outset – and establish the terms of such a rupture in advance.
And in the event of an extreme case, the other parties should also be able to ask one of the members to leave their union (so as to avoid being systematically held to ransom by a free rider). The current union treaty does contain a provision (article 50) that enables a member to leave, as the UK did – but if Brexit showed anything, it was that this mechanism has limited use at preventing a divorce from descending into chaos.
People should always be part of these decisions, of course. When states decide to surrender some of their sovereignty to a larger organisation such as the EU, it changes the nature of the pact between the citizens of a country and the people who make decisions on their behalf. This evident truth has been ignored for decades as the EU has gradually been built from the top down.
The European Union currently resembles the marriages we once had in Europe (until well into the 20th century), before it was acknowledged that they are a civil (not necessarily religious) contract that can be dissolved through divorce – not some divine construct that can never be undone.
The marriage between EU countries is blighted by cheating and empty rhetoric. This is an issue we can no longer avoid if Europe wants to do more than just “shift gears”. The EU was the most successful political project of the 20th century. If it wants to continue to be so in the 2st, it has to learn to be flexible. Only those who can adapt survive.
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