Consequences of reversing the European Union integration

Abstract

Today, financial crisis once again threatens the unity among member states and future of the European Union. The magnitude of the problem is so grave that observers and analysts have concluded a big decision must be made regarding fiscal union (thus political union) to save EMU. “Is this really the end of the road for Eurozone?” Using Power Transition theory, our analysis shows that trust and relative political capabilities are essential to build a stable Union. While it is clear that the center of global politics is shifting away from Europe and the United States to the Asian giants—the transition from West to East can be effectively planned so that the future units are satisfied with each other rather than distrustful, dissatisfied, and contentious. The slowdown of integration is not simply a regional problem with serious consequences for the economic stability of Europe. Far more importantly, our analysis suggests that the process of integration that has reduced tensions within a region previously characterized by major wars may be declining and that this in and of itself could reset the stage not only for regional confrontations but increase the likelihood that global wars may once more be considered as means to solve disputes. The European Union cannot afford to move from the cooperative contest to a confrontational one where solutions are arrived at by force rather than reason. Therefore, the challenge for European leaders is to resolve the current crisis in the EMU and build upon it a reinvigorated union that once more provides a path for complete regional integration.