Monday, June 6, 2011

A good time for a European government

It's pretty amazing that in the current climate, serious people are calling for an enhancement of the European Union's political clout. There are good reasons for the EU becoming more of a political union, but there are two big - correction, colossal and insurmountable - problems.

Problem One: imagine the result of a referendum in Ireland on the creation of a European Finance Ministry. Or indeed, in Germany.

Problem Two: do we really think that giving someone like Jean- Claude Trichet more power is going to solve our problems? The political union that would work would involve German taxpayers absorbing Greek liabilities. That's not on the table, now or ever.

So we're still stuck. Europe has too much power, and not enough. And the only way out that is politically feasible is: less Europe.