----- Original Message ----- 
From: "Robert G. Seeberger" <[EMAIL PROTECTED]>
To: <[email protected]>
Sent: Sunday, May 29, 2005 7:09 PM
Subject: The French Say "Non!"


> I'm sure most of you ran across the news that the French rejected the
> Euro constitution.
>

I'm switching the order of the questions around because the answers to the
first question are highly dependant on the answers to the second.

> Do you think this will torpedo the EU?

Torpedo strongly overstates it.  The EU is not going to fall apart
tomorrow, next month, or next year because the French said no to the new
constitution.  It is unlikely that there will be significant pullback (such
as the elimination of the Euro or the withdrawl of a number of countries
from the EU.  But, at a minimum it will slow the expansion and strengthing
of the EU.  Even more likely, IMHO, is that this will represent a turning
point in this process.  I'm guessing, to first order, that the EU is about
as strong as it will ever get now.  By the time that a new agreement might
be ratified by all countries, the demographics of the shrinking Europe will
probably take over.  The relative power of the EU vs. the US will continue
to diminish over the next 20 years to the point where the response of
Europe to any US actions will be significantly less important than the
response of China, and may be less important than the response of India or
Latin America.

The complementary part of this is the lessining of the already slim chance
Turkey has to join the EU.  Up till now, the EU has expanded by
incorporating countries that decrease it's average fertility rate.  If it
included Turkey, it would be incorporating a large, Moselim population into
Europe, which still has a fertility rate of 2.7 (compared to the EU average
of about 1.4).  It would be hard to incorporate that many workers into the
French, Italian, German cultures, if they emmigrated, but there would be
some ability to at least soften the effects of the aging/shrinking of the
EU.  But, reports from those that voted "No" in France indicated that
uneasyness with incorporating Turkey was part of the decision making
process in the "No" vote.  I think that the EU politicians are smart enough
to pick this up.

So, I predict that, within 10 years, we will see the start of the
marginilization of Europe on the world stage.

> How do you think this will effect the US?

Clearly the direct effects will be on Europe, with only secondary effects
for the US.  From a geopolitical point of view, the US will need to focus
more on Asia and less on Europe.  Pacific relationships will be the key to
international relations for the US.  China will stand out as the other
significant player in the world.  Within 10 years, it's actions/opinions
should clearly be much more important than those of Europe.  It will have
it's own demographics problem, but at a significantly later date than
Europe (I'm guessing that it will be in the '40s or so).  If the US doesn't
get its act together with regard to deficits (national and trade) and the
effects of aging on it's populaton (Medicare and SS), then it may not have
as much relative advantage as it needs to keep China from having enough
ecconomic and conventional military power to be considered the second
superpower.

Even throwing in nuclear weapons, we still have Europe going to the
sidelines....but that would be an interesting thread on it's own.

Dan M.



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