By GIDEON RACHMAN [Financial Times] – Most of the European Union is living beyond its means. Government deficits are out of control and public-sector debt is rising. If European governments do not use their new breathing space to control spending, financial markets will get dangerously restless again. Unfortunately, European voters and politicians are simply unprepared for the age of austerity that lies ahead.
I used to think Europe had got it right. Let the US be a military superpower; let China be an economic superpower – Europe would be the lifestyle superpower. The days when European empires dominated the globe had gone. But that was just fine. Europe could still be the place with the most beautiful cities, the best food and wine, the richest cultural history, the longest holidays, the best football teams. Life for most ordinary Europeans has never been more comfortable.
It was a great strategy. But there was one big flaw in it. Europe cannot afford its comfortable retirement.
Continued at The Financial Times | More Chronicle & Notices.
See also: Goodbye to Europe as a high-ranking power.
By RICHARD HAASS [Financial Times] – Even before this economic crisis, Europe was weakened by a political crisis. Many Europeans have been preoccupied with revising European institutions, but repeated rejections of the Lisbon treaty demonstrate that a united Europe no longer captures the imagination of many of its residents. Lacklustre leadership of European organisations is both a cause and a result of this loss of momentum.
Behind this drift is the stark reality that Europeans have never quite committed to Europe, largely because of the continued pull of nationalism. If Europeans were serious about being a major power, they would trade the British and French United Nations Security Council seats for a European one. This is not about to happen.
Europe’s drift also manifests itself militarily. Few European states are willing to devote even 2 per cent of their budgets to defence; and what they spend their money on makes little sense. National politics and economics dictate expenditures, so there is much replication of what is not relevant and little investment in what is needed. The whole is less than the sum of its parts.
Continued at The Financial Times | More Chronicle & Notices.
