Bottom-up blog

Does the up-coming summit about a political union of the EU needs
a “do ut des” strategy between the interested member states ?

A checklist
for possible “political deals” between those leaders who will go ahead !

Imbalances in the single market and in the monetary union need common rules, decisions and coordinated policies, in short, a political and federally organized framework within the European Union.
Different national interests and priorities can only be overcome by strategic “deals” (give and receive = “do ut des”) aiming medium and long-term common interests.

1st “Deal” – Market imbalances need multi-level governance !
Economic governance at EU level is the answer for solving imbalances between and within member states !

Economic interdependencies in the single market, but, in particular in a monetary union, request common decisions and binding co-ordination procedures!

2nd “Deal” – Realised discipline goes hand in hand with solidarity !
Common debt management at the EU is the complement of fiscal and budgetary discipline in member states !

Economic and monetary union and common decisions justify common financial solidarity; fair competition and binding co-ordination within a fiscal union have to go hand in hand with financial solidarity mechanisms; common managing of public debts (euro bonds) is the “price” for fiscal and budgetary discipline politically binding and controlling decisions at EU level.

3rd “Deal” – Cohesion and solidarity policies within member states justify assistance policies at the EU level !
Functioning financial solidarity mechanisms at the local and regional level within member states are a precondition for assistance and cohesion policies at the EU level

Solidarity and cohesion within the Union have to start within each member country, between tax income rich and poor municipalities within a Province or Region, or between tax income rich and poor regions within a member state; so-called automatic financial built-in-stabilizers already at two levels within member states, in particular, for member countries participating in the monetary union, are the price and a preconditions for financial assistance within the cohesion and social policies at EU level.

4th “Deal” – Strengthening the financial capacities at the local level and at the European level at the same time is an argument for own resources of the EU
The acceptance of EU own resources can be facilitated by strengthening the financial basis of municipalities and the cohesion at the regional level within member states

The financing of common policies require own resources of the Union based on non-discriminatory indicators; a European share of a financial transaction tax and some percentage points of the VAT as own resources of the EU can be “sold” to the public as instruments for European solidarity and local cohesion.

5th “Deal” – A balanced evolution of employment within the Union is a precondition for economic and social cohesion within a monetary union !
A European employment stabilization fund is the answer of inner-EU concentration process and growing imbalances in production and employment within the internal market and the monetary union.

Imbalances in internal trade of the Union and concentration processes in employment and unemployment within the Union justify a EU employment stabilization fund, financed by those EU countries, which have EU internal surpluses in their current balance.

6th “Deal” – A government for managing the permanent challenges of an economic and monetary union needs in the end a political framework !

Speaking with one voice not only within international economic and monetary organizations (WTO, IMF …) but also within international organizations like the UN, Economic and Monetary Union would finally lead member states into a political union of EU..
As last “do ut des” element for creating a political union of the European Union in the medium term would be the “pooling of defense capacities and of the international reserves” of the central banks of the participating countries. Already ‘in the preparatory work of the monetary union “pooling of the central bank reserves” were discussed as the “ultimate prove” that this political process of uniting Europe is considered as an irreversible step towards a continent of “peace, justice and welfare”.

The recent decision to give the Nobel price for peace to the European Union should be in this context a permanent reminder to its decision makers to develop a democratic medium and long-term vision of a political union that efficiently attack on a daily basis the problems and interests of this continent.

Brussel/Bruxelles, 11.12.2012 Michael Cwik

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