Parallax View : New Lines of Insight

By Lucy West

While we worried about China

On 1 May 2004, the European Union expanded to 25 countries and now surpasses the United States as the richest trading block in the world with 453 million people.

The new countries are from Eastern Europe like Estonia, Lithuania, Poland, Czech Republic, Hungary, etc.

In their own language, “The European Union (EU) is a family of democratic European countries, committed to working together for peace and prosperity. It is not a State intended to replace existing states, but it is more than any other international organization. The EU is, in fact, unique. Its Member States have set up common institutions to which they delegate some of their sovereignty so that decisions on specific matters of joint interest can be made democratically at European level. This pooling of sovereignty is also called "European integration”.”

In fact there has been very little sovereignty sacrifices except when it comes to BUSINESS. The EU is pretty stalled on social issues, but not when it comes to dealing with a host of business, intellectual property and trade issues. The power players squabble over power and the small nations fret about the impact these nations will have on their power, culture and ability to be heard. But mostly everybody wants to make money!

Of course the current new inductees present some interesting opportunities...they bring in a mostly cheaper workforce into the wealthier configuration. This will present big social problems for countries like Germany and France who have big social welfare programs and current unrest when it comes to ‘immigrant populations’. But the cheaper workforce also is an insourcing in a sense of this less expensive labor pool, unlike the US’s move to get cheap labor from Mexico, Caribbean and Asia. What will be interesting to watch—will the cheaper labor pool also drive the Walmartification of the economy as in the US?

What will also be interesting will be how this helps to unify US and Canadian relationships with Asia, aka China, Korea, Taiwan, etc, since their trading relationships may be a bit rockier. In spite of a bit of political noise, the path of trade has been fairly smooth over the years for the Asia Tigers and the Northern Titans to work with the US.

On the political side, the US in the form of Secretary Powell keeps a regular milk run to Asia these days trying to create a new configuration of interests. China and Japan are trying to bury the old grudges, Pakistan and India. The US is also quietly encouraging China to help ease the tension with North Korea.

So in spite of really bad times with the Middle East, the rest of the world wants to get on with making money! The Middle East represents some of the poorest and highest unemployed nations. They have virtually no manufacturing and of course, except for the black curse, have virtually no business—21st century trade (like IT), or farming or other raw materials. Unlike Africa, who probably represents more promise overall, due to enterprising populations who want to work, who have raw materials, etc. The US policies would be better served to try to create non-oil business relationships in the Middle East—and that goes for Europa as well—all have contributed to the hostile situations we have today.

But I digress, back to Europa.

EU has been evolving into this current configuration driven by a desire for European peace and prosperity. But the ultimate truth is—trade is the real reality. (See History of Treaties as an addendum). The US should concern itself as well with its sinking relationship with EU countries—and soon. Spiteful actions on technology, etc., could create big problems down the road.

Addendum: Major Treaties for European Union
• The Treaty establishing the European Coal and Steel Community (ECSC), which was signed on 18 April 1951 in Paris, entered into force on 23 July 1952 and expired on 23 July 2002;
The Treaty establishing the European Economic Community (EEC);
The Treaty establishing the European Atomic Energy Community (Euratom), which was signed (along with the EEC Treaty) in Rome on 25 March 1957, and entered into force on 1 January 1958. These Treaties are often referred to as the "Treaties of Rome". When the term "Treaty of Rome" is used, only the EEC Treaty is meant;
The Treaty on European Union, which was signed in Maastricht on 7 February 1992, entered into force on 1 November 1993. 'The Maastricht Treaty changed the name of the European Economic Community to simply "the European Community". It also introduced new forms of co-operation between the Member State governments - for example on defence, and in the area of "justice and home affairs". By adding this inter-governmental co-operation to the existing "Community" system, the Maastricht Treaty created a new structure with three "pillars" which is political as well economic. This is the European Union (EU).

Moreover, the founding treaties have been amended on several occasions, in particular when new Member States acceded in 1973 (Denmark, Ireland, United Kingdom), 1981 (Greece), 1986 (Spain, Portugal) and 1995 (Austria, Finland, Sweden). There have also been more far-reaching reforms bringing major institutional changes and introducing new areas of responsibility for the European institutions:

The Merger Treaty, signed in Brussels on 8 April 1965 and in force since 1 July 1967, provided for a Single Commission and a Single Council of the then three European Communities;
The Single European Act (SEA), signed in Luxembourg and the Hague, and entered into force on 1 July 1987, provided for the adaptations required for the achievement of the Internal Market;
The Treaty of Amsterdam, signed on 2 October 1997, entered into force on 1 May 1999: it amended and renumbered the EU and EC Treaties. Consolidated versions of the EU and EC Treaties are attached to it. The Treaty of Amsterdam changed the articles of the Treaty on European Union, identified by letters A to S, into numerical form;
The Treaty of Nice, signed on 26 February 2001, entered into force on 1 February 2003. The Treaty of Nice, the former Treaty of the EU and the Treaty of the EC have been merged into one consolidated version.
Further changes will probably be made to the Treaties as a result of the Convention on the Future of Europe and of the Treaty on the Accession of 10 new Member States, which was signed on 16 April 2003 to enter into force on 1 May 2004.