Surprise surprise, the eurozone crisis of confidence has returned with a vengeance, only this time with apocalyptic statements from the EU’s president, Herman Van Rumpoy, that if the Euro did not survive, neither would the EU. First we must strip away the hyperbole; the presumption of a continuation of europe’s ‘natural’ state of warfare and ethnic cleansing without the moderating influence of a pan-european ‘national’ identity is utter clap-trap. The reality is that if the Euro does not survive then the EU of ever-deeper political union will not survive, instead it might devolve back to something that more closely resembles the European Community of old. Whether this is a terrible thing is a matter of perspective. However, there is no doubt that the current Eurozone without full economic governance and the political mandate for a transfer-union will never function effectively, or that the current direction of sequential bail-outs as contagion spreads is destined for catastrophic failure for all members and neighbours.
So if political union is impossible, and collapse is unconscionable, what other option exists?
A lack of representative governance is playing havoc with the future of the Eurozone, and its cause is a democratic initiative from the German high court whereby it placed limits on the power of the executive to give away its authority to govern without reference to the elected parliament. The constitutional court ruled that the Bundestag must be given a full vote before further power is transferred to Brussels, and further stating that ultimate sovereignty must rest with the member states.
German parliamentary sovereignty is now threatening the future of the Eurozone, and by extension the wider economic recovery of EU as a whole.