European Union and its challenges

Critically examine the major challenges faced by European Union.

The political and economic cooperation is necessary for the stability in Europe to function peacefully was one of the lessons learnt from the World War II. To avoid any such disastrous incident to occur, in 1951, Germany, France, Italy, Belgium, Luxembourg and the Netherlands, decided to establish the European Coal and Steel Community (ECSC). Later, in 1993, Treaty on European Union (Maastricht Treaty) went into effect, established European Union (EU), with 28 countries as its member states.

A greater economic integration and closer political cooperation, coordination on foreign policy and internal security issues, Common Security and Defense Policy (CSDP), was envisaged in Europe through the establishment of European Union.

Being a multinational institution, European Union has felt multiple challenges in terms of decision making and cooperation on multiple issues.  The economic difference, different political ideologies and different governance systems poses challenges to the stability of the European Union. Some of the major challenges in front of European Union are as follows-

• ·         Brexit

Britain has been the second largest contributor and one of the ‘engine’ nations to the European Union. It has played an important role in decision making and shaping the European Union. The Britain departure would lessen the political and security expert prowess of EU. The ‘divorce clause’ presented by Britain is seen as cherry picking by the EU members, which can further destabilize the organization.

• ·         Budget

After, losing the net major contributor, the EU has called for increase the budget and contribution from rest of the 27 members for the Multi-annual Financial Framework for 2021-2027. The members such as Germany, Austria, Sweden, Denmark and the Netherlands are asking for budget cuts to at least 1% but EU is asking to set it at slightly higher limits.

• ·         Migration

According to UNHRC around 125000 refugees entered the Europe via land or sea route and majority of them reside in Greece. The lack of consensus on taking up of migrants exists in between countries. As French President wants that EU countries should share the migrants reaching to Europe. On the other side Poland and Hungary oppose this move. A perception against the migrants exists among the members related to the security of Europe as recent terrorist attacks at multiple places were executed by the poor and unemployed migrants.

• ·         Resurgent Russia

Russian capture of Ukrain, potential election interference in Europe, Russian action in Syria, cyber threats and alleged human right abuses also poses political and existential threats in front of EU.

• ·         Democratic  and rule of law concerns

The democratic backsliding was seen in Poland imposing the restriction on judiciary and Media and Constitutional and electoral reforms in Hungary raise question over the democratic ideals in EU. Any compromise on democratic principal causes the loss of country’s voting rights in the Council of ministers under Art 7.

• ·         Security concerns

The security concerns over Ukrain and terror activities such emerging Islamic States (IS) poses threat to Schengen area of free movement. The multiple terror attacks at different places and recruitment drills among the youths of EU raise the concern over the influx of migration and free borders. It causes the political and economic instability among the EU.

• ·         Debt crisis

Eurozone debt crisis sparked concerns over the fundamental structure and viability of the 19 member Eurozone. In 2015, Greece issue, the more austarity measures and economic reforms were put in lieu of a new financial assistance package. Same ways in Italy the debt has reached to 130% of the GDP. Italy could face the financial sanctions and disciplinary actions from EU. This raises rift between the EU members over the sovereign control in hands of Brussels.

• ·         Populist Government

The rise of populist governments who are critical of EU and think the Eurozone fiscal rules have constrained the economic growth of countries. The EU members have pooled sovereignty in certain policy areas and harmonized laws on a wide range of economic and political issues. The Euroskeptic sentiments are putting challenge over the unity and stability of EU. The same also resulted in Brexit.

• ·         Lack of strong leadership

European leaders do not have a robust or shared strategic vision for the EU. Britain has been a potential leader of European Union but Brexit has left a void for a strong leadership to take the causes and mold the challenges for the benefit for EU.

• ·         Political differences

EU represents an admixture of different governance patterns and ideals among countries. The more powerful countries such as France, Italy and Germany are supporter of democratic systems. On the other side Balkan nations have communist, more nationalist ideals.

• ·         EU Expansion

The further expansion of EU will put pressure on institutional capacities, its finances and its overall identity. Since 2013, the EU has recognized and welcomed the aspirations of all the countries of the western Balkans. But further economic and financial integration does not seem possible and common foreign policy is difficult to formulate.

• ·         Differences over China

The investment treaty with China, 5G telecommunication system, China’s human right record of pro-democracy movement of Hong-Cong and Uighur minority are some of the issues on which some of the members wants to take action but some want to remain aloof. The accusation of US over the Huawei also raises the difference of course of action towards China.

• ·         Unpredictable USA

US always supported the EU as it has been a potential investment destination for US. But the current protectionist policies under Donald Trump have raised question over US support for the stability of EU. US issues with trade, its exit from Iran nuclear deal and Paris climate deal put serious question over the credible partnership of EU and USA.

Conclusion

The multitude of challenges before European Union has raised skepticism over its stability and future. But the optimists suggest that the current challenges will bring more integration of countries. More efforts will be directed towards the better and efficient structural and policy level reforms.