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A Guide for the Survival of Humankind and Helping the World, Society, and Yourself.

The Fundamental Flaw of the European Union

European countries have been under considerable pressure to compete with other countries for over a century; however they have consistently failed for one reason or another. For example, businesses and factories have been steadily moving overseas where labor is cheaper. Scientific discoveries, inventions, engineering work, and other white collar jobs are also being shifted at an even greater pace, especially to Asian countries. As a result, several European nations formed an economic union (European Union or EU) to artificially support their local economies.

This has resulted with an European free trade zone (no import and export taxes or quotas between other nations in the European Union) that has greatly increased trade between European countries. This has made European countries more capitalistic on a multi-national level instead of globally. Furthermore, this anti-globalization has stunted Europe's global trade by minimizing any incentives for companies in these countries to compete more globally. The only good news is that this may minimize the sudden effects of globalization throughout Europe, such as what exists in the United States of America. Of course, the United States already had a huge free trade zone and a more capitalistic society for a lot longer than Europe.

Fortunately, this European single market has improved the economies of these countries; but, since these countries do not share a single government, it is very difficult and sometimes impossible to instill new economic laws and policies. For example, the EU is more like a confederation than a single country. Each and every country in the EU has to majority agree on any new EU law, versus if the entire EU voted and the majority rule of the entire EU decides.

Therefore, the EU is forced to pressure each country at different times to accept changes to their counties, otherwise risk being thrown out of the EU and losing all EU benefits. This is equivalent of a private club that only helps their members, if their members completely agree to follow the club's rules at all times, and the club members do not directly decide the club's rules. As a result, the only political and governing strength of the European Union is economic bullying.

In conclusion, the European Union is a perfect example of what not to do. It has become more of a way to locally slow down globalization instead of addressing global issues directly.

by Phil for Humanity
on 11/21/2006

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