reply to post by beezzer
One thing that you should comprehend is that the EU is not the same as the Eurozone and that the EU is not a confederacy or a federation.
The EU is the child of a project to get rid of wars in mainland Europe due to strategic resources starting to coal and steel and resulting in the EU
we have today that tends to be a free economic space with freedom of movement in most nations belonging to it and an attempt to streamline the diverse
legislations. This is basically it...
There is indeed movement to turn the EU into a Federation the attempt to adopt a European Constitution for example (this of course is mostly
shenanigans and most Europeans dislike the bloated bureaucracy that the EU as evolved into, mostly due to attempt to make every one happy, especially
politician and families of Europe wide political parties, for instance the Popular Parties (right wing), Socialist and Democratic Socialist and
Communists form cross European blocks). This demonstrates that politicians will mostly favor a Federation of sorts (with the exception of the right
that tends to be too nationalistic to clearly agree with that). The future for the EU is evolving into a federation or dissolution.
The issue with a federation is the centralization of power and policy, this is what is holding it back and the fact the UK will never agree to enter
into a Federation (The Crown and all that, the UK is mostly on the EU to avoid being left out and as a way to continue to be geopolitical relevant to
the US). Another issue of a federation is a central budget (less people with the finger in the pie and to a degree better control of the money, no
more sticky fingers) but that requires a normalization of tax policy and economic policy...
Because the EU has not a tax policy or an economic policy its members continue to compete amongst themselves, similar to the US in relation to states
that offer tax breaks etc but worst because the taxes are all state taxes (except a fraction of the tax on consumption IIRC, even that is set by each
state) this and the lack of management of resources and production (except maximum quotas for each product, that are often surpassed or traded), a
policy for agriculture that is basically to make France happy (the UK opted out and gets money back in return).
Take all that and add the EUROzone. Shares a single currency, single central bank (same function as the FED but completely different organization) and
you see the problem in keeping the value of the currency competitive to all states (exports and imports, even inside the EUROzone). The so called
PIIGS are the peripheral economies but its interesting to note that the EURO was in part the tool that permitted the unification of Germany, even with
costs to those in the periphery.
The problem with the periphery is that their economy was mostly dismantled and transformed mostly in benefit of the central power houses that were
more efficient without consideration to the long term, they were in part compensated and even got grants to improve infrastructures for instance
Portugal in relation to its size has Europe's largest freeway density, this to demonstrates that political corruption is prevalent in the periphery,
that is why we get the cases of the submarines in Portugal and Greece, the banking system in Ireland (that was previously pointed out as an example of
economic success), the issue with the housing boom in Spain and the inability to those nations to deal with the cheap loans that they had access that
was suddenly pushed from under them due the US crisis, forcing them to deal with their lack of sustainability. Something that was already known but
not taken seriously...