Khaleej Times

Pandemic is exposing flaws in Europe and US

- AnA PAlAcio —Project Syndicate Ana Palacio is former Minister of Foreign Affairs of Spain and former Senior Vice President and General Counsel of the World Bank Group

In 1946, with war-ravaged Europe exhausted and in disarray, Britain’s wartime leader, Winston Churchill, gave a speech in Zurich in which he emphasised the need to “recreate the European fabric” in order to restore peace and freedom to the continent. “We must build a kind of United States of Europe,” Churchill declared. It was a foundation­al moment for what would become the European Union, even if Churchill’s views of the United Kingdom’s place in Europe were rather more nuanced.

Subsequent attempts to construct a united Europe have never lived up to the grand vision that Churchill advanced that day. Indeed, in the 74 years since his speech, the UK first refused to take part in the European project, then grudgingly entered the bloc and secured numerous opt-outs and concession­s, only finally to leave it in January this year.

Nonetheles­s, the idea of a cohesive Union remained, with the United States of America seen as the ideal model for what Europe might someday become. Indeed, in 2006, a year after French and Dutch voters rejected the ill-fated European Constituti­on, Belgium’s then-prime minister, Guy Verhofstad­t, published a manifesto for the continent’s future that evoked the Churchilli­an dream. He titled it “The United States of Europe.”

But after a decade of crises, sluggish growth, ineffectua­l leadership, and internal divisions, the idea of building such an entity has all but faded away, and Europe has taken a sharp turn towards intergover­nmentalism. For all the talk of shared values and common approaches, robust unity is simply not feasible right now.

For the foreseeabl­e future, Europe will remain politicall­y constraine­d by the reality of parochiali­sm — epitomised by member states’ extreme difficulty over the last month in reaching agreement regarding pandemic-related recovery funds and how to share the additional debt burden. Rather than bridging divides, multiple meetings of EU heads of government and finance ministers have only highlighte­d and reinforced them. We cannot act together, because we do not think of ourselves as belonging to a single whole.

There is no United States of Europe, but rather united blocs of states within Europe. We often hear about the “frugals,” the Visegrád Group, the Nordics, and the Southerner­s, for example. A similar dynamic was evident during and after the 2008 financial crisis, in the EU’s weak response to Russian aggression in Ukraine, and, devastatin­gly, during the 2015 migration crisis. Europe lacks the leadership needed to align these blocs and push everyone in the same direction.

Worse, the US under President Donald Trump is taking a similarly troubling turn. In the absence of strong and effective national leadership, US states — and, more tellingly, groups of states — are going it alone.

On April 13, California, Washington State, and Oregon announced the formation of a “Western States Pact” to coordinate their coronaviru­s response, while seven northeaste­rn states have establishe­d a similar grouping. With the federal government failing to coordinate procuremen­t of medical supplies to combat Covid-19, state and local government­s have reportedly been competing to purchase scarce personal protective equipment and ventilator­s, thus driving up prices. California

Governor Gavin Newsom has even taken to referring to his jurisdicti­on as a ‘nation-state’. My intention is not to opine about US federalism or the extent of Trump’s authority (although his recent claim that he wields ‘total’ authority under the US Constituti­on was so roundly rejected by all sides that he backed down the following day). My point is to express real concern. After all, it is precisely the dynamism resulting from America’s unique marriage of diversity and cohesivene­ss that has made the country a model for many Europeans. US Supreme Court Justice Louis Brandeis once famously remarked that any state could serve as a “laboratory” for innovative policy experiment­s which could later be adopted nationally. And the US has been far more successful than Europe in achieving the delicate balance between empowering individual states and maintainin­g a sense of national unity. Today, however, America, too, is falling victim to balkanisat­ion, internal competitio­n, and shortsight­ed leadership, and narrow turf battles. Such warning signs suggest that the US is becoming more like Europe, rather than vice versa. These developmen­ts are especially worrying because the coming years will be exceedingl­y difficult for a world fundamenta­lly changed by Covid-19. The Internatio­nal Monetary Fund is now predicting that global real GDP will shrink by 3 per cent in 2020 as a result of the virus, compared to a drop of -0.1 per cent in 2009, in the depths of the Great Recession. That episode fuelled the profound political polarisati­on, populist surge, and instabilit­y that continue to hamper the world’s ability to tackle pressing challenges such as Covid-19.

We will need global engines of creativity and economic growth. More than at any time since the end of World War II, the world needs America to be at its best and most effective, and to be a model to emulate again. For its own sake and ours, the US cannot become another Europe.

After a decade of crises, sluggish growth, ineffectua­l leadership, and internal divisions, the idea of building such an entity has all but faded away, and Europe has taken a sharp turn toward intergover­nmentalism.

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