Europe’s Deepening Muddle
German Finance Minister Wolfgang Schäuble recently called for EU treaty changes to create a European budget commissioner, among other things. But, while Schäuble’s strategy may sound appealing, it will amount to nothing – not least because of countries' unwillingness to cede sovereignty.
PRINCETON – German Finance Minister Wolfgang Schäuble recently declared that the European Union has “moved sovereignty to the European level” – a startling claim, given that European governments seem to be pursuing their national interests more aggressively than at any time since World War II. Was Schäuble’s statement supposed to serve as a rallying cry for greater European solidarity? Or was it just a ploy to deflect calls for a larger German contribution to the eurozone’s recovery?
Schäuble is at the forefront of Germany’s efforts to lead Europe without having to pay its bills. To this end, he has called for EU treaty changes to establish a European “budget commissioner” with authority to spend shared European funds and reject member countries’ fiscal strategies when they do not comply with established rules. According to Schäuble, negotiations for such reforms should begin immediately after the European Parliament election in May.
While Schäuble’s strategy may sound appealing, it is, at best, the symbolic garb of progress. For starters, the common funds are meager, with no prospect of being increased – not least because of Germany’s unrelenting opposition. Likewise, so long as member countries maintain fiscal sovereignty, a new mechanism to facilitate finger-wagging at countries that defy European budget rules will change nothing. Over the last two decades, every effort to discipline the EU’s fiscal delinquents has failed, owing to the lack of enforcement authority.