BY BERIL DEDEOGLU
TODAY'S ZAMAN- The European Union's current economic crisis is a test for the relations amongst member states and the future of the EU. A test with two essential dimensions.
One of these derives from the problematic assistance between members that has provoked harsh debates within the EU. The decision to develop a rescue plan was a difficult choice for the governments of the richest members of the EU because everyone knew that the essential part of the financial burden would be theirs. The fading domestic political support for Chancellor Angela Merkel, friction in her coalition government and the fact that the rescue plan will be brought before Germany's Federal Constitutional Court are just a start. The feeling of "working for others" sparks serious social disturbance in creditor countries, and the governments have to manage this delicate situation.
The second dimension of the test concerning the rescue plan is about the problems in the internal functioning of the EU. Some member countries suggest that the voting rights of members who don't apply tougher finance regulations should be suspended in the EU decision-making process. It's not known if this measure could coerce a country that is unable or unwilling to implement those measures. What is certain is that it is perfectly possible to receive financial aid and to trifle away this money. Furthermore, if a country will be excluded from the "political union" without being excluded from the economic and monetary union, this bizarre circumstance will create an unmanageable situation for the EU.
One of the proposals in order to break this vicious circle is to make an adjustment in favor of the euro in the euro-dollar parity. This may create an advantageous position for the countries that provide financial assistance within the EU, even if this can be perceived as opportunism and deepen the lack of confidence between the member states. Moreover, any measure that will affect the US dollar will be undoubtedly scrutinized by the United States.
Every economic, financial and political step that concerns the EU's future is somehow related to the EU-US relationship. To summarize, since the end of the Cold War, the EU has made efforts to become a global political power; thus it sought its autonomy from the US. Nevertheless, the latter has always been reluctant about that. The bilateral relationship between these two actors has started to give the image of a quarrelsome marriage, especially in commerce, security and defense matters.
The "conjugal" problems have incited these two to look for other partners, and they have both fixed their eyes on Russia. The EU may have been quicker in launching rapprochement with Russia, bypassing the US. However, Russian-US rapprochement, which is of critical importance for global stability, is also under way, and now the EU seems to be at bay.
The US will not just watch the EU modify the euro-dollar parity for the euro's favor; it will use every political instrument at its disposal to prevent it. It seems that the US is offering the EU more financial assistance in exchange for political "loyalty" toward Washington. The US can naturally not allow any measure that would put the American economy in a difficult position, and by this means, it holds the EU's political destiny in its hands. The EU is anxious because it knows that it has to decide at once whether to accept the US' conditions or not.