Monday, June 08, 2015

Governmental Union Concept: "The Creation of European Union Territories, Having Greece Its First Recipient"

Hello All,

Just as of yesterday the British newspaper of the Guardian is reporting the ongoing feud between Greece and the European Union and the IMF (International Monetary Fund). This of course is Greece's way to stall for time seeking to find a better settlement for its economic crisis. Playing Chicken is an ugly affair for all public spectators be one an insider or the mass population gawking from the outside in towards this plain street fight. 

The phrase “trench warfare” comes to mind. On Friday evening the Greek prime minister, Alexis Tsipras, lobbed some choice words at his foes in Brussels, calling their proposed debt deal “absurd”. Days earlier, the International Monetary Fund had joined its allies in Brussels to fire a volley of criticism at Athens. The Greeks already had “significant flexibility” to get out of their budget mess, IMF boss Christine Lagarde said, as she urged Athens to repay the €300m instalment of its bailout loan due on Friday.
Seven years after the crash, the Greek economy is still 25% smaller than it was at its previous peak, 10% of households have no electricity and youth unemployment is running at more than 50%. Tsipras and his finance minister, Yanis Varoufakis, may specialise in needling their creditors, but the troika also need to take into account the fact that Syriza has formed a legitimate, democratically elected government and cannot be told that its electoral programme is irrelevant. 

Here's the link to the "Guardian News Article" referenced above dated June 7th, 2015.

Greece in all its citizenry are suffering a self-inflicted Great Depression economy not unlike the American historical one of the 1930's. However the huge European Union (ie Germany), IMF, and some World Bank bail outs have cushioned the fall from making it a total train wreck. Nonetheless the locals on the ground would say otherwise, still a societal suffering on this scale hasn't been experienced since the end of World War II. Although the EU (European Union) is experiencing a continental wide Recession it is countries like: Greece, Portugal, Spain, Italy, Cyprus, etc... have fallen the farthest. The reasons are many with easy credit lending standards, generous subsidies for the people, and plain old rotten corruption, followed by negligent incompetence makes any nation experience this sort of pain. 

Still the cure right now feels worse than the disease itself from Greece in particular as of late. Although the onlooking European brethren in similar depressions economically are playing a wait and see approach. If Greece succeeds in getting a better deal for stalling, perhaps Cyprus or Portugal may follow Greece's formula. This soon becomes the unraveling of a cheap worn out suit for the EU as a whole putting out man-made economic fires on the continent. 

All societies rely on the free movement of people and commerce in order to prosper. Additional pillars are of the rule of law and a robust security element domestically for all its citizens. In the case of meta-national unions like the United States and in this case the European Union. Cohesion is a must if not a crucial need for the proper regulation of such a union, which in the EU case can easily unravel with Greece's exit. Russia would smile like the Cheshire Cat in Alice of Wonderland fairy tale. Since at the dissolution of the former "Soviet Union" bloc Iron Curtain counties along Eastern Europe. Those once intimidated nations many resembling mini-me's as little Russia's leaped onto the arms of the more stable democratic nations to their western flanks. This caused a whiplash and a entrenchment by the current Russian Federation in order to stave off incursions of Western encirclement, much less influence. It's past years of tantrums by invading Georgia and now the eastern flank of Ukraine are the consequences of such a EU or NATO (North Atlantic Treaty Organization) policy. 



My concept for today is to float the idea of why not creating direct EU Territories within the greater European Union. Yes, the EU has indirect existing territories globally via its Nation State members such as: Great Britain, France, Denmark, etc... In my conceptual design this would be expanded to include future European nations seeking EU candidacy. Such as: Turkey, Bosnia, Macedonia, and so forth although others are already standing in line per say seeking such a status. 

A European Union Territory Nation would create a two tier assembly for the continent. Removing some of the stiffer standards of a full State eligibility would require. Whilst providing a common Euro currency to a degree, the free flow of commerce and peoples, and security military mutual safety measures. However an EU Territory would be allowed to maintain its once abandoned sovereign currency. In the case of Greece it would be the Drachma as it phased out its own currency for the Euro around the year 2002. This would be a windfall perhaps for Greece's dilemma to float its own currency and wiggle around some of the stiffer issues of restructuring its debt to a relative degree. The return of the Drachma won't be a surefire way to avoid debt repayments of existing loan's. The global currency markets may even treat the Greek currency akin to junk status in terms of writing its own national bonds and/or treasuries. Still this is a steam vent valve worth considering attempting to avoid a cliff drop by kicking Greece out of the EU as an economic basket case.

European Union Territory status would give nations like Greece, Portugal, Cyprus, Malta, and others leverage to evolve at their own nativist pace economically. Avoiding hopefully the nasty D word of Default along its trajectory of recapitalization by healing its way out of such Depression status economically and socially. The newly minted Territories would also act as a buffer security zone. From its core EU States already in place and functioning at nominal standards as capitalistic democracies. Insuring cohesion of the meta European Union and thus avoiding fragmentation of its weaker and delinquent current States. Those current States struggling to keep their heads above water will have some breathing room, but not total since accountability to the EU is still paramount. 

Now this concept allows for the fact that the whole of the EU Commission and Council would have to deliberate over such a potential notion. Where Greece in the short term can literally drown with an economic partial or full default of its payments in the meanwhile. So it may be a shotgun marriage if the EU Commission created an emergency waiver for Greece to accept demotion to Territory status. Thereafter it can be ironed out all the nagging details of the consequences and obligations of such a two step entity for the EU itself. 

This will keep the ideal of a European Union from coming apart like the aforementioned cheap suit metaphor. Allowing less mature as government institutions a chance to evolve with a training wheels environment than a full blown EU State status capacity. European Union membership is a privilege and not necessarily a right to Statehood. This Territory mechanism will make sure of that by giving less stringent demands to such sovereign entities to work out its internal structures. While hopefully all the rest of the EU States prosper and grow together the worthy continental union of Europe.