The British people’s decision to leave the European Union has raised the question of whether the continent’s nations would be better off separate or together. As further countries flirt with anti-EU parties, here is a perspective on the drawbacks and benefits of a European dispersal.
The EU Should Separate
The single currency hurts smaller economies
Moving from a strong Deutsche Mark to a weaker Euro significantly benefited Germany’s export industry, as its products became cheaper to acquire internationally. (In fact, the country was the world’s third largest exporter in 2014.) On the other end of the spectrum, Greece adopted a stronger currency, which made their products more expensive on the international market; the country was later held back during its debt crisis by being unable to devalue said currency, which would have raised much-needed money by increasing exports. Spain faced the same issues when it went through a depression.
The EU’s policies ignore high unemployment in less rich countries
When Brussels worked out a refugee policy for Europe, it may not have had poorer countries’ interests in mind. Italy’s and Spain’s unemployment rates are around 11% and 17%, respectively. How would these countries be able to accommodate an influx of refugees during times of poor economic conditions? The newcomers require jobs to complete their integration, and it would be paradoxical for countries to commit to finding occupations for foreigners while their own citizens go jobless.
Countries want to decide their own policies
A country has a right and a duty to govern itself, whether you agree or disagree with its choices. For example, Hungarian Prime Minister Viktor Orban put up fences to prevent refugees from entering his country. In a Hungarian referendum, 98% voted against accepting the EU’s quota on how many refugees the country should accept. Poland also has swayed far-right and prevented refugees from coming in. Jaroslaw Kaczynski, the leader of Poland’s ruling Law and Justice Party, said that the country wouldn’t accept refugees “because there is no mechanism that would ensure safety.” Both countries will point at the terror attacks committed in Germany by refugees as examples of a failed attempt at multiculturalism. If a conservative policy on refugees is the will of the people, that decision should be respected.
EU Countries Are Better Together
Acting in unison can make foreign policy much more effective
With conflict raging in Ukraine, Georgia and Crimea in recent years, the EU’s eastern members are getting increasingly nervous. As the US gets less and less involved, Europeans need to act themselves. Working as a block that tackles decisions together is far more imposing to outsiders than several states with varying policies and values. Yet, Britain is already losing influence in global security operations as a result of its post-Brexit impending separation from the EU’s CSDP (Common Security and Defense Policy). When geopolitical crises arise, coming up with a general course of action that all members back is the best way of tackling such problems head on. This can only be achieved if each member stands with one another.
Better trade deals can be negotiated from within the EU
For any European nation, negotiating trade deals with other countries is much more advantageous as part of the EU rather than as an independent economy. As one of the world’s biggest economic unions, the EU has a lot more leverage when brokering a deal with China or India. Being able to offer (or withhold) access to its many consumers is a strong bargaining tool. Additionally, there is free trading between members of the EU, as it is a customs union. Individual countries, while able to create their own terms, are unlikely to reach deals as beneficial as the EU does on their own.
Leaving the EU might come with several drawbacks
In the case of Britain, around 43% of its exports go to EU members. Unless a replacement deal is agreed upon, leaving could result in British goods being subject to tariffs. Thanks to a Brexit-driven crime surge, British corporations are now more likely to trade with corrupt markets outside of the EU. Meanwhile, several US banks and many companies have decided to move jobs out of London and into the EU. The Pound fell to a 10-week low in part due to these reasons, and, although it has since bounced back against the dollar, the same hasn’t held true in comparison to the euro. While many have theorized about where Brexit could lead the country, the persistent uncertainties of Brexit’s impact on the UK – both economically and diplomatically – is worrisome at best.
The bottom line: The EU was created to put an end to centuries of war between its members, a goal in which it has succeeded. However, projects like the Euro and policies for tackling the refugee crisis appear to be more detrimental to some countries than others. Do you think the world is better off with a united EU or a divided one?