The EU Unravels

What’s at the root of the deepening crisis in the European Union? George Friedman of STRATFOR attributes it to persistent nationalism, and in recent weeks has written a pair of substantial posts articulating this view.

The first, The Crisis of Europe and European Nationalism, was published on September 13th. We read (boldface emphasis added by me):

From my point of view, the pressure and slaughter inflicted by two world wars on both countries created a collective mental breakdown…

…The Europeans were searching for a way to overcome their history.

One problem was the status of Germany. The deeper problem was nationalism. Not only had Europe failed to unite under a single flag via conquest but also World War I had shattered the major empires, creating a series of smaller states that had been fighting to be free. The argument was that it was nationalism, and not just German nationalism, that had created the 20th century. Europe’s task was therefore to overcome nationalism and create a structure in which Europe united and retained unique nations as cultural phenomena and not political or economic entities. At the same time, by embedding Germany in this process, the German problem would be solved as well.

The European Union was designed not simply to be a useful economic tool but also to be a means of European redemption. The focus on economics was essential. It did not want to be a military alliance, since such alliances were the foundation of Europe’s tragedy. By focusing on economic matters while allowing military affairs to be linked to NATO and the United States, and by not creating a meaningful joint-European force, the Europeans avoided the part of their history that terrified them while pursuing the part that enticed them: economic prosperity. The idea was that free trade regulated by a central bureaucracy would suppress nationalism and create prosperity without abolishing national identity. The common currency ”” the euro ”” is the ultimate expression of this hope. The Europeans hoped that the existence of some Pan-European structure could grant wealth without surrendering the core of what it means to be French or Dutch or Italian.

Yet even during the post-World War II era of security and prosperity, some Europeans recoiled from the idea of a transfer of sovereignty. The consensus that many in the long line of supporters of European unification believed existed simply didn’t. And today’s euro crisis is the first serious crisis that Europe has faced in the years since, with nationalism beginning to re-emerge in full force.

In the end, Germans are Germans and Greeks are Greeks. Germany and Greece are different countries in different places with different value systems and interests. The idea of sacrificing for each other is a dubious concept.The idea of sacrificing for the European Union is a meaningless concept. The European Union has no moral claim on Europe beyond promising prosperity and offering a path to avoid conflict. These are not insignificant goals, but when the prosperity stops, a large part of the justification evaporates and the aversion to conflict (at least political discord) begins to dissolve.

How could anyone with an understanding of history and human nature have expected this to work? Perhaps the example of America gave a false hope to the transnationalist elites who imagined that one could, with a promise of prosperity as a sop, simply switch off the deep, and ancient, cultural and ethnic loyalties (and resentments) of the various indigenous European peoples. But America is a very different place than Europe: its immigrants (until recently at least) have always come here with the explicit intention of becoming part of the historic American experiment, setting aside national allegiances, and joining the ambient American culture. Europe, on the other hand, had just emerged from two horrifying paroxysms of war — and it is a much overlooked fact of the history of the late 20th century that the relatively stable peace after the second great war was the result, in large part, of the sanguinary disaggregation of ethnic and cultural blocs that had been left politically and socially entangled by the victors of the first. (It took further years, and the dissolution of the Soviet empire, for the same violent process to unfold in Yugoslavia.)

In other words, no sooner had the different peoples of Europe at long last sorted themselves out, at a hideous price, into relatively independent and homogeneous living arrangements, than they found themselves being yoked together once again.

A couple of weeks ago, Lawrence Auster summed up his own very similar view:

[T]he ultimate cause of the European financial crisis is not economic, but moral and spiritual. To sum up the argument:

After World War II, the leaders of Europe made a disastrous moral error, associating the ordinary life of the European peoples, including the very existence of their nations, with Nazi-like evil.

Therefore the nations of Europe had to be eliminated at all costs, by merging them into one sovereign power.

Merging them into one sovereign power required, inter alia, that they all have the same currency.

But the adoption of a common currency for all of Europe has created the financial crisis, and the insistence on keeping the common currency makes it impossible to cure the financial crisis.

Sixty-six years after Adolf Hitler put a gun to his head, the fear of him still rules Europe, driving it to commit not only national and cultural suicide but economic suicide as well.

This is the same point that George Friedman made above — that the postwar elites of Europe, aghast at the fathomless horrors their high civilization had created, sought not only prosperity through economic union, but moral redemption. The demon that Europe’s elites knew they had to slay on this new, secular altar was the ethnic and cultural distinctiveness of Europe’s indigenous peoples and their various nations — and with it the natural human tendency to enjoy, take pride in, and seek to preserve and defend the character, traditions, autonomy and identity of one’s homeland. (Indeed, I have believed for some time that modern Western civilization’s phobic and dangerously radical aversion to all forms of discrimination is in large part a kind of ideological hysteresis in reaction to Nazism — a point that Mr. Auster has made as well.)

Mr. Friedman posted another essay on the subject today, Europe, the International System and a Generational Shift. He continues in the same vein:

National identity was as deeply embedded in Europe as elsewhere, and historical differences were compounded by historical resentments, particularly those aimed toward Germany. The real solution to European wars was the creation of a European nation, but that was simply impossible. The European Union tried to solve the problem by retaining both national identity and national regimes. Simultaneously, a broader European identity was conceived based on a set of principles, and above all, on the idea of a single European economy binding together disparate nations. The reasoning was that if the European Union provided the foundation for European prosperity, then the continued existence of nations in Europe would not challenge the European Union. Perhaps, over time, this would see a decline of particular nationalisms in favor of a European identity. This assumed that prosperity would cause national identity and tensions to subside. If that were true, then it would work. But there is more to Europe politically speaking than an enhanced trading area, and the economics of Europe are hardly homogeneous.

… Between 1991 and 2008, all of this was buried under extraordinary prosperity. The first crisis revealed the underlying fault line, however. The U.S. subprime crisis happened to trigger it, but any financial crisis would have revealed the fault line. It was not a crisis about the euro, nor was it even a crisis about economics. It was actually a crisis about nationalism.

… This system was created in a world in which European politics had been declared in abeyance. Germany was occupied. The Americans provided security and inter-European fighting was not allowed. Now, the Americans are gone, the Germans are back and European international politics are bubbling up to the surface.

In short, the European project is failing at precisely the point that it had been attempting to solve ”” nationalism. The ability of leaders to make deals depends on authority that is slipping away. The public has not yet clearly defined the alternatives, but that process is under way.

Mr. Friedman is right about all of this, I think. He does go on to make one point I’m not so sure about, though:

It is similar to what is happening in the United States with one definitive exception: In the United States, the tension between mass and elite does not threaten to disintegrate the republic. In Europe, it does.

I wish I shared his optimism about the prospects here at home.

9 Comments

  1. What, no reactions? Then I’ll say something: I was relieved to see that Mr. Friedman had written “under way,” and not “underway.”

    As for the analysis of what’s currently wrong in Europe: there might be something to the idea that the problem lies at a deep cultural level, but I don’t think it’s wrong to see the problem as having economic roots: the Eurozone economies never really got in sync, which meant that the euro, when it appeared, served to do little more than paper over those local differences. It was only a matter of time before the differences reasserted themselves, and this would have been true, I think, even if Europe had had a less troubled history.

    Analyses seem mixed as to whether a return to the old currencies would fix things. The euro’s been in place long enough to have gathered momentum and to have achieved a certain cachet (or at least entrenchment); unplugging it too suddenly would arguably do more harm than good. I haven’t been following the nitty-gritty details on this, but a romantic part of me would love to see a both/and solution that keeps the euro while also welcoming back the old currencies. Sure, that would make things complicated, but Europe in the 80s was both a complicated and fun place to live. Europeans can handle complexity, and this sort of complexity would be salutary.

    As for all that transnational business… it may be too late for Europe to turn aside from its present course. I don’t see the Eurozone/EU un-yoking itself from its governing bodies anytime soon.

    Posted November 9, 2011 at 2:49 am | Permalink
  2. Malcolm says

    Hi Kevin,

    As for the analysis of what’s currently wrong in Europe: there might be something to the idea that the problem lies at a deep cultural level, but I don’t think it’s wrong to see the problem as having economic roots: the Eurozone economies never really got in sync, which meant that the euro, when it appeared, served to do little more than paper over those local differences. It was only a matter of time before the differences reasserted themselves, and this would have been true, I think, even if Europe had had a less troubled history.

    But the point here is that those “local differences”, and the difficulty of getting “in sync”, are themselves due to differences at a “deep cultural level”. Do you not think so?

    I think the idea of using both the Euro and local currencies is an interesting one (nations could issue their sovereign debt in the local currency, for example), but I have a feeling its complexities — in particular managing the effects of a constantly varying exchange rate between the two, and sorting out which obligations are to be fulfilled with local currencies vs. euros — would be overwhelming.

    I don’t see the Eurozone/EU un-yoking itself from its governing bodies anytime soon.

    We’ll just have to see about that.

    Posted November 9, 2011 at 10:52 am | Permalink
  3. Severn says

    The consensus that many in the long line of supporters of European unification believed existed simply didn’t.

    They understood all along that there was no consensus, which is why the whole European project has been notable for its dislike of democracy. The entire project was conceived of and implemented by a tiny technocratic elite, and not only without the consent of the governed, but frequently into the teeth of popular resistance.

    Posted November 9, 2011 at 11:48 am | Permalink
  4. Somewhat hesitantly I would suggest that it was not ‘nationalism’ generally that provoked a movement to ‘supra-nationalism’, but one particular variety of nationalism, that is, German! Ever since Bismarck created the great German cuckoo in the heart of the European nest, the rest of us, in our different ways, have tried to deal with it. The French, for example, tried war three times and were defeated. Since 1945 they have tried the opposite tack by attempting to cuddle Germany into aquiescence and so far German guilt has helped. However, three or four generations of Germans have arisen since 1945 and the current crop, quite properly, lack the guilt of their grandfathers. Now their choice is to remain aquiescant and sign the cheques presented to them by the ‘Franco/Hungarian dwarf’ in order to keep Italians and Greeks in the style to which they have grown accustomed, or not, and thereby bring the whole unrealistic edifice crashing down.

    Despite the pain, “‘Tis a consummation devoutly to be desired”. Let’s give realism a chance!

    Posted November 9, 2011 at 3:54 pm | Permalink
  5. Andrew Alexander, a shrewd observer and a man who warned against the whole European chimera decades ago:

    “To us, freedom is essentially a matter of civil liberties. On the Continent it has a simpler meaning: not being ruled by the Germans. And it is Berlin which is now calling the shots.”

    Read more: http://www.dailymail.co.uk/debate/article-2059155/European-debt-crisis-The-cure-kill-recovery.html#ixzz1dFRmyUgK

    Posted November 9, 2011 at 5:03 pm | Permalink
  6. Severn says

    It’s hard to stop the richest and most powerful country in a region from calling the shots. I suppose Canada and El Salvador have some thoughts on that subject. Some people tend to get a bit unhappy about the idea of Germany in particular calling the shots.

    In spite of what Mr Duff thinks, the EU was an Anglo/French idea aimed at constraining Germany.

    it is Berlin which is now calling the shots

    For some people, that’s the problem. London and/or Paris is supposed to do the shot-calling, not those other people!

    Posted November 9, 2011 at 6:05 pm | Permalink
  7. I beg to differ with ‘Severn’ above. There were intellectual notions of a united Europe earlier in the 20th century but the first practical step was taken by Robert Schuman (French foreign minister) in 1950/1 when he proposed and formed the European Coal and Steel Community:

    http://en.wikipedia.org/wiki/European_Coal_and_Steel_Community

    The Anglos had nothing to do with it. Later, of course, it was the French (de Gaulle to be exact) who vetoed our first pathetic attempts to belatedly (and foolishly) join ‘le Club’!

    Posted November 10, 2011 at 7:28 am | Permalink
  8. David Brightly says

    Steady on, Malcolm, the apocalypse is not yet nigh.

    The authors you quote are seeing more in the situation than is actually there. The Greek and Italian governments (and perhaps others) are having to pay high rates of interest on their new borrowings because lenders are not confident that they will get their money back. Back in the days when governments ran their own currencies they would simply pay off the debts by printing money. This would result in internal inflation and a fall in the exchange rate but gave a fairly gentle adjustment. This option isn’t open to Eurozone governments. The ECB, constrained by rules reflecting the German desire for sound money, is not going to inflate the Euro. Why can’t the Greek and Italian economies generate enough tax revenue to repay their government debt? Maybe because their governments have not had the option of stimulating growth by competitive devaluations of their currencies, maybe because they have unsustainably large public sectors. Greece has had socialist governments for many years and Italy lacks a political consensus that could address the problem. We here in the UK were in a similar parlous state in the 1970s. We accepted IMF supervision of the economy in exchange for loans. Then, thank goodness, Margaret Thatcher created a majority in favour of taking the austerity medicine. The Scots, of course, didn’t like it. Could this effect of the Euro have been forseen? Probably. Did anyone see the 2008 financial collapse coming? Only a few, who are now very rich. Is Europe going to war again? Of course not. Something will be patched together.

    Posted November 14, 2011 at 6:18 pm | Permalink
  9. Malcolm says

    As the blind man said, David: we shall see.

    Posted November 14, 2011 at 6:38 pm | Permalink

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