ABSTRACT
Europe can be seen from a multiplicity of angles. We have identified four. The first angle – probably Europe’s biggest challenge in the years to come – is the launch of monetary union. A second angle is to look at oft-mentioned European economic difficulties. These might be better understood by considering Europe’s apparent low level of innovation and of economic dynamism. Other economies, such as the US, seem to have performed more successfully in areas with high technological turnover such as computing, or at creating jobs in the service sectors (many of which, admittedly, of pretty low quality – the so-called McJobs). Europe seems to have lagged behind, with the result that it is now faced with a high and dramatic level of unemployment, employment practices considered too rigid and welfare provisions – previously a reason for pride – which need to be scaled down as they become too expensive to maintain. All these problems are epitomised by Europe’s high and persistent rate of unemployment. Thirdly, there is the larger theme of how to deal with the consequences of Europe opening eastwards following the fall of the Berlin wall. Eastern countries are knocking on the door of the Western world for recognition and integration into their economic order. Development issues have emerged in the transition from command to market economies. The transition has often resulted in success stories, but also at times has caused areas of stress. Western Europe is faced with the need to help make the transition smoother and, when possible, to help to reduce conflicts or political tension. In prospect, the issue of how to widen the European Union and the timing and characteristics of such widening, must figure prominently in every European political agenda. Key issues include ‘variable geometry’ – groups of countries going ahead on single issues on which they agree – or multi-speed Europe, a much discussed hypothesis for EMU. Fourthly, Europe also faces a constitutional challenge concerning the reform of its decision-making structure. Economic integration was represented, from the beginning, by the three original communities: the European Coal and Steel Community, the European Atomic Energy Community (Euratom) and the European Economic Community (EEC). More recently, and particularly since the 1993 Treaty on the European Union, new initiatives have been launched on new areas of great political relevance, the so-called second and third pillars. The second pillar is represented by further steps towards the development of a Common Foreign and Security Policy (CFSP). The third pillar corresponds to the area of Justice and Home Affairs (JHA) where greater co-operation is slowly developing. Important choices regard the level at which decisions have to be taken, moves towards federalism need to take into account the general consensus that the principle of subsidiarity – according to which decisions must be taken at the lower possible level – should be applied. Altogether, these developments, via greater harmonisation of rules and an increasing number of common decisions, will probably lead towards deeper political ties (on this, see, among other books, Goodman 1996).
