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Exit Left and Exit Right: the travails of the European Union

Published 05 Aug 2015

On Tuesday 4 August, immediate past president of AIIA NSW, Colin Chapman, addressed about fifty members and guests at Glover Cottages on current concerns in Europe. His impressions were reinforced during a five-week visit he had just made to the UK and France. He began by observing that appalling casualties had shattered Europe after two world wars. But stability and cohesion had gradually been built back through the far-sightedness of a few politicians. Among them were Winston Churchill, who in 1946 called for a United States of Europe; Robert Schuman who in 1950 established the Coal and Steel Community of Belgium, France, Germany, Italy, Luxembourg and Netherlands; and Jean Monnet and Paul-Henri Spaak, who in 1952 became the first chairmen of the European Commission and European Parliament. Collectively, they and others had laid the groundwork for the present EU and the Eurozone. The EU is the biggest and most powerful economy in the world, but growing problems beset its continuance and status. These include economic issues such as the uncertain future of energy supply, underperformance and growing unemployment; and political problems such as an increase in refugees principally from North Africa, a growing incidence of terrorism, and anxieties about the possibility of further national conflicts, especially ones instigated by Russia, and especially in the minds of Ukrainians, Poles and Balts. Growing problems are leading to the resurgence of nationalism and growth of extremist groups, particularly on the right. The world’s news focus was at present on the Greek crisis – politicians refusing to pay their debts and workers being kept poor and unemployed by Germany. There was more than a grain of truth here, and Spain may be next, followed by Portugal. Colin’s own view was that Greece may exit the Eurozone, but not the Union.

Colin Chapman 2015

As for Britain, hostility towards EU bureaucracy, its parliament and its courts, remain strong. The Brits say they are a sovereign country, a nuclear power, prominent in NATO, a centre of global finance, and are given insufficient respect. The Conservatives are split, probably erring on staying in the Union, Labour is moving against staying, and the Libs are very pro-EU, but with only one MP, are largely ineffectual. The Scottish Nationalists are very pro-Union. The City of London is worried that if the country opts for leaving the Union, imports and exports to and from Europe will suffer and the City of London will cease to be the financial centre of Europe, ceding its place to Luxembourg. Meanwhile, whether to stay or go is up to the government of the day to decide. Before deciding, they might have another go at negotiating a better deal for the UK. The French are similarly ambivalent towards the EU, but simply ignore the rules when these prove to be inconvenient. Colin emphasised that Australians should be very concerned about all these issues and challenges, because the survival of the EU is highly relevant to their own economic well being.

Report prepared by Richard Broinowski