The unfortunate emergence of European unity Posted by Max Bergmann

The summit has seen the bizarre emergence of European unity at the G-20. France, Germany, Spain, among others loudly proclaim their opposition to greater stimulus efforts and Europe has stood firm in its calls for expanded international regulation. In fact, if you were say which superpower was driving the G-20 agenda, it would have to be Europe. The Obama administration has seemingly sought to avoid a fight on stimulus and has laid out a framework for financial regulations that is not all that different from what the Europeans are demanding.

Normally, I would be all supportive of European unity at a global summit. But in this case the unity that has emerged is more out of political weakness. Despite some indications from the Germans that they would step up to rescue failing EU economies, there is just not that much desire on the part of the European countries to do more to support each other. The opposition to stimulus - while it is about fears of inflation and deficits - is also about worries that any stimulus spending will bleed beyond national borders. Hence, Europe is unified that the U.S. should be the one to act on regulation, while they should be left alone.

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There is resentment from France and Germany toward Britain and the Eastern European countries for siding the with Bush administration and preventing the emergence of a unified European foreign policy. The French and Germans opposition towards economic stimulus for Great Britain and Eastern European countries is based more on emotion than on sound economic reasoning.

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According to the post the EU has a population of 456 million, ranking it third behind China and India.This does not take into account possible future enlargements. The largest of which, Turkey, would boost the EU population by 70 million people. However, the EU's population is exhibiting nearly zero organic growth and this is also true of the majority of new countries being considered.

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