EU at 50

This week market the 50th Anniversary of the Treaty of Rome. Thus the new super-state the European Union is middle aged. Euroskeptics, realist political scientists and nationalists still argue the evils of integration and economic/monetary union. They revel in what as seen as stupid rules mad by the EU. The best example of a perhaps good idea gone wrong is the British grocer charged with not selling bananas by the kilogram. As he argued, “My customers ask for bananas by the pound so I sell them by the pound. If they asked by the kilogram, I’d sell them by the kilogram.”

While, this is silly there are other problems that face nations in the EU such as the fixed exchange rate takes monetary policy out of individual nations’ hands. (Monetary policy is exemplified in the United States by the Federal Reserve changing the interest rate.) The Mundell-Fleming model argues that nations cannot have all three of the following:

Free Capital Flows
Fixed Exchange Rate
Sovereign Monetary policy

This leaves individual nations to resort to only fiscal policy (taxation and government spending) to jump-start lagging economies.

However, as the economies of the European Union become more integrated, such a need will not exist. As it gets more integrated each EU country will be hit more similarly. Thus, there will be consensus on monetary policy emanating from the European Central Bank in Frankfurt.

Such arguments for economics are all well and good. Although, the number one reason for supporting is war. Or more specifically a lack thereof. Since 1945, there has been no major land war fought in Europe. For those of us born after World War II, this may not seem like such a big deal. But, a quick look at European history shows how amazing this really is.

In 1648 the Treaty of Westphalia ended the Thirty Year’s War. Westphalia recognized for the first time that there were countries and not just domains of specific kings, dukes, etc. But since that time, there has not been 50 years without a major war on European soil – until now.

1650-1700
Northern Wars
Anglo-Spanish War
Great Turkish War

1700-1750
The Great Northern War
War of Spanish Succession
War of Austrian Succession

1750-1800
Seven Years War
Anglo-French War
French Revolutionary Wars

1800-1850
Napoleonic Wars

1850-1900
Crimean War
Franco-Prussian War

1900-1950
World War I
World War II

1950-2000
No major wars

2000-
No major wars

The process of peace put into place after World War II has been the most successful in European history since Neanderthals were driven to extinction by the arrival of homo sapiens on the continent. So three cheers for the European Union and Happy Birthday.