Tuesday, July 03, 2012

Europe's Export of Political Integration

From democracy to banking, Europe has launched institutions that have shaped the world; with its recent financial crisis, Europe might be about to do it again.

The European financial crisis is only giving further legitimacy and urgency to greater European political integration. It is argued that with many economies dependent on each other, with a shared currency and shared markets, political decisions regarding spending and financial regulations need to be centralized or at least centrally moderated.

But if that argument has force, it stands to reason that a world financial crisis could justify a similar system of political integration, only globally in scope. That because economies are so intertwined that a collapse in one could cause a collapse in another, and so on, that it would only make sense for financial systems to be regulated centrally by one world body.

Indeed considering the Euro crisis was itself at least a partial consequence of the American subprime mortgage crisis, and the world economy is still in moribund stagnation, it would appear that perhaps the argument is already here.

And though greater political integration in Europe, whatever form that takes, will be localized there, like many other European institutions, greater political integration could be exported around the world, and more importantly, could very well cover it completely.

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