In the context of globalization, the EU has been a groundbreaking regional arrangement that has redefined and expanded the conventional notions of a free trade zone. While the EU currently operates out of a small geographic corner of the total global economy, it carries wide implications for the rest of the world and, in my estimation, offers something of a microcosmic glimpse into the future of a potentially integrated world economy.
Initially conceived as a minimalist Western European trading bloc, the EU has far exceeded the reach and grasp of its architects to become a continental entity encompassing the political, economic, and social spheres of democratic life in Europe. With an integrated marketplace providing for the free flow of goods, capital, services and people across Europe, the EU can serve as a frame of reference for the various and sundry actors involved in the fledgling global economy.
This is not to say that states should accept or adopt the EU framework, but rather that the relevant actors in the global economy should use it as a lens through which to observe where certain polices have failed and succeeded, and to apply the lessons learned. At present, the jury is still out on the overall utility of the EU as it continues to grow and evolve. But, despite continued opposition and its growing pains in the early stages of its evolution, the single market of the EU has grown legs in its continued march into eastern Europe, and now it seems to be developing wings for its flight across the pond.
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3 comments:
Speaking of flights across the pond, how about that "open skies" bit?
And... Chelsea AND Man U knocked out! ?A rematch of 2005!?
WOOHOO!
I think that cooperative steps such as those laid out between the United States and the EU ("developing wings for its flight across the pond") are of basic importance if we are to further attempts at growing an internationally integrated economy that enjoys any degree of stability. International monetary stability is of dire importance in the integration of global markets. However, as Eichengreen points out, stabilizations policies cannot be dictated (even by a hegemon), but must instead arise from international collaboration. Given the growing importance of monetary policies (especially via the exchange rate discussed in the Frieden piece), it seems obvious that nations must build an overall trust before developing any willingness to come to monetary compromise.
Reilly-
The rise of the euro as an international reserve competitor to the dollar will make it difficult to maintain monetary compromise and trust. I worry that the possibility of petroeuros replacing petrodollars will hurt any chance of compromise in international monetary development. We really are at a crossroads where dollar/euro relations can collaberate for monetary stability, or compete and produce all types of problems.
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