Europe＇s Integration Process is Floundering

Europe’s Integration Process is FlounderingBy Ding Y uanhongThe post-WWll situation in Europe is closely related to Europe’s integration process. Right now, one of thespecial features regarding the current European situation is that Europe’s integration process has nearly becomeenmeshed in stagnation. The European Union is disintegrating, with various kinds of contradictions cropping upand its cohesion sharply reduced. The EU rotating chair - -state Hungarian premier said, “Europe is like a bicyclewithout a chain, unable to move forward."This sort of situation is created both by internal and external factors. The main reason is that some structuralcontradictions and defects inherent in the EU burst into view as a result of the impact of global financial crisis.When all its member states put their own interests before those of the Union, those contradictions are even harderto tackle and conflict of interests is impossible to avoid. The following aspects can well explain why Europe'sintegration process has been thwarted.I. The Tow Wheels of“Deepening”and“Expanding” Have Stopped SpinningEurope' s integration process has always relies on those two wheels to get moving. This has always been thecase.“The Lisbon treaty", which gives expression to the“ deepening”mechanism, took nearly ten yeas to befinalized, only after going through a tortuous course, from preliminary informal discussions and then the signingof "Treaty on the European Union Constitution", to the final stage of completion and publication of“The Lisbontreaty”. The original intention of installing a permanent president of the EU Council and director of the EUAction Committee was to increase the EU's external influence by speaking with one voice. However, it not onlyhas failed to perform their proper functions due to the way selection of personnel had to be made and theirfunction to be defined, but also has intensified rows within the EU about a fair distribution of rights and fundamong various intitutions. Just as an ambassador to China from one of the EU member states has remarked,since each country in the EU insists in taking diplomatic rights and power into its goverment s hands, either thepermanent president of the EU Council or the director of the EU Action Committee, would spend much of theirtime playing a coordination role within the EU itself. They would not be allowed to speak in public on behalf ofthe EU without authorization. Any action on major diplomatic issues should be taken through consultation by theforeign ministers of all the 27 member states. On the issue of military intervention against Libya, for instance,only a small number of EU members, such as France, Italy and the UK, were active in participation while most ofthe EU members were unwilling to do so. From here we can see how difficult it is to make‘deepening'mechanism work.With regard to the“expansion wheel", it is obvious that further expansion of the EU will have to encounterquite a few difficulties because its member states are divergent in opinions，interests, etc from each other andthey have their own way. As a resul, all of them actually possess中国煤化工Balkan countrieswaiting for admission into the EU，some of them are less enthusiaYHCNMHGsillfallshortin一70一meeting the requirement of the admission and when the admissions of Romania and Bulgaria were perceived asan act with undue haste. On the issue of granting EU membership to Ukraine, Georgia and others, even thoughPoland and some central and easterm European countries are trying hard to push ahead with the deal, theredoesn't seem to be much hope of finding a solution within a short period of time, due to the changes in local .situation and expressed misgivings by the U.S. and other old member states about the reaction from Russia. Asfar as the“expansion" of the EU membership is concerned, it is Turkey that is extremely dificult to deal with. .For Turkey, it takes for a long time to apply for the EU membership. In addition to its historical wrangles withGreece over the Cypress issue, its increasing influence in the Islamic world has caused discomfort and anxiety toFrance，Austria and other countries, which in return have made those countries continue to strongly oppose itadmission.The whole thing has experienced long delays without any sign of settlement up to now and become adrawn- -out thormy problem between the U.K, France and others. Even if one or two Balkan countries, like Croatia,are permitted into the EU, that will only have ltte beneft to uplift the EU's status and influence under suchcircumstance.I. The Euro Zone Has Shown the Tendency of splitting into TwoIt is seen as the greatest achievement for the EU integration process, when the euro, a unified money systemwas introduced and a euro zone was established. It is also seen as a matter of pride for all its member countries.More than ten years have passed since the introduction of the euro and its membership increased to 17. Within a .short span of 10 years, it has not only gained a firm footing in the intermational market, but has also become thesecond largest international reserve currency after the U.S. dollar. Its shares in global money reserves have grownto nearly 25%. In a sense, the euro has been taken as an important instrument for the EU to draw influence onthe international stage.However, reputation of the euro has been tarnished as a result sovereign- -debt crisis in Europe initiated bythe global financial crisis. Just as Angela Merkel, the German Chancellor has put it, if the euro fails, it meansthe whole of Europe will end up in failure. In the past year or so，the EU member countries are waging a“campaign" to rescue the euro. Although the debt crisis happening in Greece, Ireland, Portugal and others havetemporarily been resolved through joint efrts of the EU and the IMF，no fundamental tum for the better hasbeen found. The root cause of the crisis, as we see it, is the so-called“unified money system' , which simply puttogether dfferent countries with huge discrepancies in their economic strengths, developmental levels and .financial conditions. It would not be an easy job to narrow down differences in their economic and financialconditions between and among the EU member states within a short period of time. .In order to address debtcrisis, a tighter financial policy has to be practiced, which in turn has further enlarged those economic andfinancial differences. According to the statistics published in the first quarter of 2011, GDPs for Greece, Ireland,Portugal were registered a negative growth as compared with those in the same period last year. Spain and Italywere able to gain some increases in their economies, though marginal, they still stood lower than the averagelevels of the whole of euro zone. However, economic conditions in Ge中国煤化rthem Eurpencountries looked much better. As the GDP values of Germany and Freof the euro zone,THCNMHthe economic growth rates of the euro zone have surpassed those of the 0.S. and Bntan, and seen a 20.5%-.71一increase as compared with the first quarter last year.Actually, differences in economic conditions have in reality drawn a political dividing line. In March thisyear, when the Lisbon Treaty was revised and the new“Convention on the Euro” was passed, not only had theleaders of all its 17member countries held firstly a summit meeting, but also the leaders of the U.K., Poland andother non- -euro zone countries, in order to coordinate their positions. Even before that, the euro zone countrieshad already split into two separate groups: one is the so- -called“ Northern members"，consisting of Germany,Finland and others, which had not been affected by the sovereign -debt crisis. The other is the so -called“Southern members", including Greece, Portugal and others that had been suffered seriously from the crisis. Thetwo groups of countries held meetings separately and at the same time，such instances of controversy have neveroccurred before. Recently, an article on the U.K.' s Economist magaznie made a comment on the currentsituation of the euro zone, saying that“ Europe' s two speeds have always been a political ghost, yet they haveright now become an economic reality.'I. Implementation of the“Schengen Agreement" Has Met Some DiffcultiesConclusion and implementation of the Schengen Agreement is also seen as one of the greatest achievementof the EU integration process that provides the necessary impetus for easy flows and interactions of personnel.Goods, capitals, etc. even since the very beginning of the implementation, the agreement has encountered thedifficult problem of dealing with the entry of alien immigrants. As a result of an aging population and work forceshortage，quite a few EU countries are in want of outside helpers as‘ 'chief labor". As time goes by，theirdomestic unemployed population continues to increase while alien becomes a big social problem for many EIcountries. Some countries such as Great Britain have not applied for membership of the Schengen Agreementbecause they are mainly afraid of bringing disaster to themselves. When Poland and some other central andeastern European countries were applying for EU membership, strict specifications were drawn up about theemployment of newly -arrived work force into the old member countries by sheer persistence of Germany thatborders with them, setting a 7-year-time limit of“deferring period". France, Italy and other EU members alongthe Mediterranean Sea have been under the pressure from the immigrants from North Africa in recent years.Those countries have no reason to keep away those immigrants out of consideration of economic interests，moralstandards, etc, but at the same time it is beyond their capacity of letting more immigrants coming in. therefore,there were even some provisions in the past to curb inflows of immigrants from Tunisia, Libya and othercountries. However, as situation in this region in the state of flux，and on-going civil war inside Libya inparticular, large flock of refugees port into Europe without restriction, thus posing a big and acute problem.In the face of those harsh realities, the EU member states are divided in opinion. No one single countrywould be willing to help relocate such a large member of refugees. They pay no attention at all to and refuse torender a helping hand to those refugees, even to the point of seeing those hapless refugees being drifted anddrawn into the sea. Ialy was the first to bear the brunt. It took advantage of the Schengen Agreement by sendingthose refugees to France instead. On the other hand, France tried tg blarl r intoment phem with force byclosing borders with Italy. This matter had made leaders of these two中国煤化工each other face toYHCNMH Gaface and it was brought to the EU Council for arbitration. A final' ung was mauc al uic cU Council to the一72一.effeet that countries concerned would temporally stop implementing the Schengen Agreement when they demandit necessary. When such a precedent was created, it meant a severe setback to the agreement. This approach isclosely akin to implying that whether the agreement would no longer bound by the rules of law. It seems that aretrogressive change to the EU integration process has taken place.At the continuous onslaught of financial crisis and debt crisis, three sets of trends that exert profoundinfluence on the EU integration process have appeared. They are:Firstly, Germany' s enthusiasm for pushing ahead the EU integration process is wearing off.After going through the test of the crisis, Germany' s economy is bursting with tremendous vitality and hasoutshone the other European countries and even those developed countries in the world, doing credit to Germanyfor its outstanding economic performance. As a result, much weight has been added to Germany’s influence andsay right on the European afairs, with a great sput of putting its own interests above anything else. Take oneexample. On the issue of how to tackle with the debt problems of Greece and other countries, Germany wouldstill insist on taking a cautious stance, even under criticism and blame from its aliese. It took a tight grip on theamount of money for giving assistance， stressing the need of the recipient nations to enforce effective financialdisciplines take another example. On the issue of military intervention in Libya, it sets a precedent for casting anabstention vote on the UN Resolution 1973 together with some newly - emerging countries and keeps a certaindistance from its western alies. In spite of groundless accusations and heavy pressure, it sticks to a position ofnot taking part in the NATO bombings on Libya. That's because the German public, out of consideration of theirown interests, take a passive atitude whether to assistance to Greece or air strikes on Libya. According to thelatest opinion polls, only 20% of the people believe that it is right to help Greece our of crisis, while as high as47% of the respondents say that it is wrong to do so. Unlike the U.K. and France，Germany has always keptpersevering in its eforts to cut down military spending， paying lite atention to what Europe and WATO aredoing in their defense. Since the end of WW I ,there have existed a strong anti-war and no use of force feelingsamong the German public.People do not altogether approve participation by NATO in military actions inAfghanistan. As for the German government, it has naturally less inclined to act abrupuly in military interventionagainst Libya. Recently, the Us. President Obama personally urged the German Chancellor Merkle to supportNATO moves to launch air strikes against Libya while the U.S. Defense Secretary Gates even opening criticizedGermany and France by name at a NATO meeting. However, their efrts proved to be fruitless. The abatementof Germany' s zeal in promoting the EU integration process is by no means accidental. In addition to taking intoaccount its own interests, it shows that Germany, as a strong economic power, is seekinga way to exert itsindependent political role that is consistent with its status, but would not be willing to become just likea“fileleader" of the EU.Secondly,“Locomotive" functions by Germany and France have been reduced.Germany and France work hand in hand to push forward the European integration process by playing"locomotive”functions， which in fact is the results of wW I. In the past，France was in a position to makedecisions while Germany foot the bill; France to enjoy the limelight while Germany to do real work. This sort ofdivision is some how unfair, and will no longer be the case u中国煤化工rowing itensifedintemnational competition and when the gap in economic strength betCNMHG3 is widening. Aclear indication of the instance this time shows that, when France took the lead in pushing ahead with using一73--.military intervention against Libya out of consideration of its own interests, Germany decided to act otherwise bykeeping its distance from France and going its own way.It is a universally recognized fact that ever since the outbreak of global financial crisis, Germany has alwaysinsisted in seeking compromise according to its own interests as far as the EU issues are concerned. Thomas deMaiziere，former German Interior had bluntly put it this way,“the days will likely be gone forever soon whenGermany is only bent on the matters advantageous most to the EU with a due caution taking shape in the post-WWII times. The country making the largest contributions to the EU's budgets has to safeguard its woninterests." By force of circumstance, there still has a need to maintain a relationship of close mutual contact andconsultation between Germany and France， but the connective meanings of their cooperation have undergonedramatic change. In addition, as the number of EU member countries grows, there exist a wide diversity of viewsand appeals within the EU members. So Germany and France will also be unable to push forward EU integrationprocess according to their wills completely. In short,“locomotive” functions by Germany and France willgradually be weakened.Thirdly, the U.S. factor in intervention is looming large.The global financial crisis and the debt crisis in Europe give a clear expression of the relative importance ofthe U.S. dollar and the euro, the two major currencies in the world. Since the introduction of the euro, the dollarhas regarded it as the gravest Challenge.In a sense，the monopoly position of the dollar still serves as thefoundation of the U.S. hegemony. Therefore， the U.S. will not allow its currency to be in a weak position of. shaking. In the past ten years or so, the U.S. has been trying to make the euro in a state of fluctuation bymanipulation of interest rates, so that the euro will be hard- -pressed to play a role in promoting economic growth.Besides, the euro is seen as the“best product" of the EU integration process and so the EU has done everythingin its power to make the euro stand firm and expand its influence. At the onset of the financial crisis, Franceand Germany took the lead in launching an attack against the U.S. dollar, and put forward a proposal for reformof the international financial system. The U.S., on the other hand, would be unilling to show weakness andmade attempt to ward off offensive from the EU countries by relying support from Japan, Canada and somenewly. -emerging countries. After debt crisis induced by financial crisis broke out, the U.S. took it as anopportunity that can be exploited to its own advantage. By employing active meddling by the hedge funds andinvestment banks，adding fuel to the flame by the rating agencies and making a great to -do by the mass media,the U.S. tried to put a curse on the euro by weakening the confidence of the markets on the eruo, so as to forceit to reduce its values again and again. When German chancellor Merkle visited the U.S. recently, PresidentObama took the occasion to put pressure on her on the issue of European debt problems. Even in the sexualharassment case of Dominique Strauss -Kahn，former IMF managing director, who was in favor of the euro,people are suspicious of the U.S. playing underhand tricks. It can easily be seen that competitions between thesetwo currencies are highly intensive. Crisis in the euro is of an important matter concerning the success or failureof the integration process in Europe. With the U.S. active involvement, it has become more and more difficult tofind a way for the solution to this issue.One high- raking ofcial of the EU once said that the EU isa“meeranimal in the world"，anditis very中国煤化工hard for an outsider to understand it. He is probably right in sayingJCNMH Garkel in saus.s: a conglomerationof sovereign states that cannot be equated with a sovereign state. I.Among them there are euro zone and non- -euro zone member countries; there are“Schengen Agreement”andnon-“Schengen A greement”member countries; and there are NATO member countries while some are neutralones. Within the euro zone, there actually exist the so- called “southern members”and the“ northern members" .Inside the EU, there also are the Visegrad Group of four central and eastern European countries, the five Nordicstates, among which Norway has not entered the EU, but is a NATO member, and the Benelux Union. Still more,among the EU member countries, they are different in size, maybe rich or poor, new or old members. Relationsbetween and among them are complicated and confused. The EU decision -making mechanism is also veryunique. The highest organ of power is the EU council equally represented by the 27 member countries.Settlement of important issues should be reached in unanimity through consultation, that is, one - -vote veto rightfor each member. The Council President will be rotated by the member countries. To be arranged in alphabeticorder, with a half- -year term of office. After the establishment of a permanent president, the rotating president isstill there，the EU Council is an executive body and its president and members are decided by the membercountries through consultation. Within the Council itself, there are nearly 30 general departments designated byprofessions and each performs its own functions. The EU legislative body is the EU Parliament. The MPs arechosen according to population ratio of each member; they are divided into groups by their political tendencies.Instead of the countries they are from. Proposals raised by the MPs are of individual responsibility， and whenthey are passed, they do not have any force of constraint to the EU Council. As for the European Court ofJustice, the EU judicial body, its main functions are to exercise arbitration power to settle disputes between EUmembers, and it has no right to attend to various judicial cases concerning each and every members. Thecomplexities of interactions inside the EU, a decision-making mechanism featured by bureaucracy and red tape,have greatly placed severe constraints on exerting its influence in the world in consistent with its power. DrHenry Kissinger had once remarked sarasically that“if you want to do something with the EU and look for it,you'll find it hard to know its phone numbers.'As the number of EU members grows, and multi -polarization of interests has become noticeable, it isgetting harder for the EU to take concerted actions in various fields. When problems prop up，such as taintedcucumber cases, shifting responsibilities to others or making charges against others will follow. It is not a plainsailing for the EU integration process to go thus far up to now, but it is also unrealistic to hope that it will makefurther progress in the future. The European Union is but a commonwealth of interests between its members.They are bound together for good or ill, and no one would like to see it retrogress or disintegrate. The only wayout is to carry out fundamental reforms so as to adapt itself to the changing new situation. However, it is easiersaid than done. Perhaps it is unavoidable that Europe will gradually go downwards.(The author is former Chinese ambassador to the EU and presently a guest researcher of the CDPS. Thisarticle was finished on June 13, 2011.)中国煤化工MHCNM HG--75-