Britain's idea of a united Europe has never been more than a free-trading area.
In spite of that, the Germans and the Dutch liked the prospect of sharing the European Union membership with British free-traders, apparently as a counterweight to overbearing French state interventionists.
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| Although the form of the British exit from the EU is often presented as a reductionist binary choice, London has in effect restated the fundamental question of what is a European project, Michael Ivanovitch writes. |
Having twice vetoed in the 1960s the British entry into what was then called the European Common Market, France eventually relented and agreed to Britain's accession in 1973.
Soon, however, France and other EU members had to deal with British "opt-outs" from legislative and regulatory provisions London was finding contrary to its government traditions and requiring sovereignty transfers to unelected officials running the European Commission in Brussels.
Nearly three years after the successful referendum to leave the EU, Britain is now in the final stages of negotiating its exit.
Germany planted the seeds of destruction
Although the form of the British exit from the EU is often presented as a reductionist binary choice — "a no-deal exit" or "a deal the U.K. and the EU can live with" — London has in effect restated the fundamental question of what is a European project: A Europe of sovereign nation states, or a federal European super-state.
The disastrous fiscal austerity policies imposed by German Chancellor Angela Merkel on sinking euro area economies at the beginning of this decade, and her subsequent disorderly open-door immigration waves in 2015 have been a catalyst and a detonator of strong centrifugal forces throughout the European Union.
In response to cataclysmic shocks of the Great Recession, Merkel set out to teach a lesson to euro area "fiscal miscreants" and those unable to control their banks (Spain). In the process, she rebuffed American President Barack Obama's request to ease up on her devastating fiscal austerity, because Washington was rightly concerned that a deep and intractable European recession would hit hard one-fifth of American exports.
To those calling for some European solidarity, Merkel retorted that it's everybody for themselves, with Germany continuing to live off its trade surpluses with the euro area partners while pursuing a "black zero" budget balance.
Presidential candidate and later President Donald Trump understood all that. He told Merkel that trade free-riding on the U.S. was over, and so was Washington's total underwriting of German security. Apparently shocked by the lack of American solidarity (stupidity), Merkel's response was that "Europeans truly have to take our fate into our own hands." In other words, never mind, Germany will continue to bilk Europe.
That, however, was too late for Merkel and Germany. Her policies have led to the extreme-right xenophobic Alternative for Germany (AfD) shooting up from zero votes in 2013 to the country's third-largest political party now.
And that was also an eye opener for some smarter Europeans. When the Hungarians saw that Merkel was going to direct refugees their way, Budapest said it didn't want Berlin to decide who was going to live in Hungary.
Berlin and a Berlin-run European Commission were outraged at that lack of Hungary's European solidarity. Worse, an arrogant German EU budget commissioner publicly threatened that he would cut off regional development funds to which Hungary was entitled.
France's 'civil war'
Germany got its next comeuppance in Italy. Rome finally summoned the courage to say "basta!" (enough!), after being left alone for years to handle thousands of African and Middle-Eastern migrants and refugees landing on its shores. Berlin's only response to Italian appeals for European solidarity was to criticize Rome for refusing to honor the maritime traffic laws and to secure people in danger.
To get back at Italy for refusing to follow Germany's diktat on immigration policies, Berlin led the assault, with its French sidekicks, on Italy's attempts to rescue its sinking economy with fiscal policies that were well within the euro-area budget rules.
Germany and its EU Commission now got exactly what they wanted: The Italian economy sank into recession late last year, and will probably remain there for most of 2019.
The story is not over, though. Italy is now teaming up with Hungary and Poland to create an anti-German and anti-French block, with unpredictable consequences for the EU's future.
