Tuesday, March 9, 2010

Euro Unity? It's Germany That Matters

http://www.nytimes.com/2010/03/10/world/europe/10iht-letter.html?ref=world

This article outlines Greece's economic crisis, and the debates (or lack there of) about what needs to be done to save them. As of now, Germany stands as the strongest European economy, with only 3.3% debt at this time. The burden of saving the Greek economy, is therefore attributed to Germany, since all other nations feel that they are most capable of doing so. With the Euro continuously losing value, Germany (a country at first opposed to the Euro) is holding the European economy up. The article states "the Germans will be vindicated in their long-held view that for the euro to survive, other countries will have to be, well, more German."

This article is especially interesting in analyzing it through Finnemore's lens about constructivism and world balance. She provides the example of the European Union as a model of excellence in obtaining a political balance, countering the realist idea of regional hegemony. This article disputes Finnemore's idea, and supports realist theory. Though the EU may at one point have had a fine balance of power, Germany's increasing economic strength is boosting it to a hegemonic position in Europe. If Germany continues to have to act as the crutch to all failing European Economies, the Euro may fail, and Finnemore's idea of balance may dissipate.

2 comments:

  1. Personally I disagree with the notion that the EU was ever balanced. Greece was only allowed to join the EU, because Goldman Sachs and other US investment banks helped the country hide their debt. Finnemore's claim that the EU had achieved political balance is also wrong, because Northern European nations have had better economies and their governments are more stable and provide public services for their people more effectively than the rest of the world. EU nations with the weakest economies have histories of political conflict that continue to plague them. Inequalities that had existed in the past continue even after the formation of the EU.

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  2. Personally, I find it kind of ironic that Germany is now moving into a hegemonic position in the European Union, considering the state of the nation's economy after World War I. I just find it interesting how a country could go from a state of immense inflation to becoming the strongest economy in the European Union. I also find it interesting that it is on its way to becoming the hegemon of the European Union; usually I would assume that a more historically established country like the United Kingdom would hold that position. I would also have to disagree that the EU has even been politically balanced, like Tiffany said. For example, I highly doubt that a country like Bulgaria has even held as much political stature as the United Kingdom or France.

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