Today marks the 50th anniversary of the Treaty of Rome, which created what is now called the European Union (EU). As the EU's 27 member-countries celebrate the historic event in Berlin, this is a good time to take stock of the achievements and failures of a unique experiment. History will possibly judge that the biggest achievement of the last 50 years is a virtually unbroken period of peace and growing prosperity on a continent that has historically been an area of strife. So the Treaty of Rome""which was preceded by the Second World War, in which 36 million Europeans were killed""has achieved its main objective: learn lessons from the past, avoid war and look forward to build a better future. This holds even greater meaning for the newer EU member-states, who have their own histories of conflict and subjugation. While peace is now taken for granted, the primary challenge ahead is to ensure economic dynamism and continued prosperity. | |
| The sustained European drive to achieve peace and security through shared prosperity is unrivalled in the world, and something that other regions can emulate""especially the United States, in how it deals with its southern neighbours. The EU has provided special budgetary arrangements for its poor regions and members, and the result is much higher standards of living in what were the poor corners of the continent, like Ireland and some of the southern European economies. Integration has also been made possible by allowing flexible programmes for different levels of union""some countries are part of the common currency programme while others are not; some are part of the Schengen treaty on a common visa regime, whereas others have stayed out of it. |
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| What next? One challenge is the complex business of managing a union that has more members than ever before, and therefore greater diversity within the geographical area. New rules are needed, but the attempt at a European Constitution collapsed two years ago, and is only now being revived. Then there is the sustainability of Europe's social democrat model in the face of a more raw form of capitalism in the United States and the ever-growing challenge from Asia. The threat is more to Europe than to any other region because of the high-cost structure of much of its economic activity. Then, migration provides yet another testing point, as people from around the periphery (and many of them are Muslim) want to cross borders and enjoy the EU's standard of living. It also happens to be the case that Europe's population is aging, and if the economy is to be dynamic, it will need young workers and a growing population. It is hard to see what the solution can be, other than more migration. But the result of opening the gates even a little is that questions of integration and multiple identities""common enough in India, which is even more diverse than the expanded Europe""will dog the EU in the decades to come. |
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| That is not all. The EU has become a protectionist force in global trade negotiations, and therefore a stumbling block in the way of concluding the Doha Round. The reform of European agriculture is endlessly delayed, affecting farmers in India, who are denied a European market. And the bureaucracy has become a by-word for Brussels, where the EU secretariat is housed. There is only one Baljit word to describe the challenge: Change with the times. |
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