Dear Listees,

An open rift in NATO regarding the war in Iraq.

This article was published on October 21, 2002 by United Press
International
(UPI):

http://www.upi.com/view.cfm?StoryID=20021021-105420-6060r

You may find it more relevant than ever.

There are many articles about this and other topics here:

http://ceeandbalkan.tripod.com

http://samvak.tripod.com/briefs.html

http://groups.yahoo.com/group/conflictransition/messages

Free anthologies of Sam Vaknin's articles in United Press International
(UPI) and Central Europe Review (CER) can be downloaded here:

http://samvak.tripod.com/freebooks.html


Analysis: EU NATO -- competing alliances
By Sam Vaknin
UPI Senior Business Correspondent
>From the Business & Economics Desk
Published 10/21/2002 11:17 AM
View printer-friendly version


SKOPJE, Macedonia, Oct. 21 (UPI) -- Saturday's vote in Ireland, won by
the "yes" camp by a 63-percent majority, was the second time in 18
months its increasingly disillusioned citizenry had to decide the fate
of the European Union by endorsing or rejecting the crucial Treaty of
Nice.

The treaty seeks to revamp the union's administration and the hitherto
sacred balance between small and big states prior to the accession of 10
Central and East European countries.

Enlargement has been the centerpiece of European thinking ever since the
meltdown of the eastern bloc.

Shifting geopolitical and geo-strategic realities in the wake of the
Sept. 11, 2001, atrocities have rendered this project all the more
urgent. NATO -- an erstwhile anti-Soviet military alliance is search of
purpose -- is gradually acquiring more political hues. Its remit has
swelled to take in peacekeeping, regime change, and nation-building.

Led by the United States, NATO has expanded aggressively into Central
and Northern Europe. It has institutionalized its relationships with the
countries of the Balkans through the "Partnership for Peace" and with
Russia through a recently established joint council. The Czech Republic,
Poland, and Hungary -- the eternal EU candidates -- have been full scale
members of NATO for 3 years now.

The EU responded by feebly attempting to counter this worrisome
imbalance of influence with a Common Foreign and Security Policy and a
rapid deployment force. Still, NATO's chances of replacing the EU as the
main continental political alliance are much higher than the EU's
chances of substituting for NATO as the pre-eminent European military
pact. The EU is hobbled by minuscule and decreasing defense spending by
its mostly pacifistic members, and by the backwardness of their armed
forces.

That NATO, under America's thumb, and the vaguely anti-American EU are
at cross-purposes emerged during the recent spat over the International
Criminal Court. Countries, such as Romania, were asked to choose between
NATO's position -- immunity for American soldiers on international
peacekeeping missions -- and the EU's (no such thing). Finally -- and
typically -- the EU backed down. But it was a close call and it cast in
sharp relief the tensions inside the Atlantic partnership.

As far as the sole superpower is concerned, the strategic importance of
Western Europe has waned together with the threat posed by a dilapidated
Russia. Both South Europe and its Northern regions are emerging as
pivotal. Airbases in Bulgaria are more useful in the fight against Iraq
than airbases in Germany.

The affairs of Bosnia -- with its al Qaida presence -- are more pressing
than those of France. Turkey and its borders with Central Asia and the
Middle East is of far more concern to the United States than
disintegrating Belgium. Russia, a potentially newfound ally, is more
mission-critical than grumpy Germany.

Thus, enlargement would serve to enhance the dwindling strategic
relevance of the EU and heal some of the multiple rifts with the United
States -- on trade, international affairs (e.g., Israel), defense
policy, and international law. But this is not the only benefit the EU
would derive from

its embrace of the former lands of communism.

Faced with an inexorably ageing populace and an unsustainable system of
social welfare and retirement benefits, the EU is in dire need of young
immigrants. According to the U.N. Population Division, the EU would need
to import 1.6 million migrant workers annually to maintain its current
level of working age population. But it would need to absorb almost 14
million new, working-age immigrants per year just to preserve a stable
ratio of workers to pensioners.

Eastern Europe -- and especially Central Europe -- is the EU's natural
reservoir of migrant labor. It is ironic that xenophobic and
anti-immigration parties hold the balance of power in a continent so
dependent on immigration for the survival of its way of life and
institutions.

The internal common market of the EU has matured. Its growth rate has
leveled off and it has developed a mild case of deflation. In previous
centuries, Europe exported its excess labor and surplus capacity to its
colonies -- an economic system known as "mercantilism."

The markets of central, southern, and eastern Europe -- West Europe's
hinterland -- are replete with abundant raw materials and dirt-cheap,
though well-educated, labor. As indigenous purchasing power increases,
the demand for consumer goods and services will expand. Thus, the
enlargement candidates can act both as a sink for Europe's production
and the root of its competitive advantage.

Moreover, the sheer weight of their agricultural sectors and the
backwardness of their infrastructure can force a reluctant EU to reform
its inanely bloated farm and regional aid subsidies, notably the Common
Agricultural Policy.

That the EU cannot afford to treat the candidates to dollops of
subventionary largesse as it does the likes of France, Spain, Portugal
and Greece is indisputable. But even a much-debated phase-in period of
10 years would burden the EU's budget -- and the patience of its member
states and denizens -- to an acrimonious breaking point.

The countries of Central and Eastern Europe are new consumption and
investment markets. With a total of 300 million people (Russia counted),
they equal the EU's population, though not its much larger purchasing
clout. They are likely to spend the next few decades on a steep growth
curve, catching up with the West. Their proximity to the EU makes them
ideal customers for its goods and services. They could provide the
impetus for a renewed golden age of European economic expansion.

Central and Eastern Europe also provide a natural land nexus between
west Europe and Asia and the Middle East. As China and India grow in
economic and geopolitical importance, an enlarged Europe will find
itself in the profitable role of an intermediary between East and West.

The wide-ranging benefits to the EU of enlargement are clear, therefore.
What do the candidate states stand to gain from their accession? The
answer
is: surprisingly little. All of them already enjoy, to varying degrees,
unfettered, largely duty-free, access to the EU. To belong, a few -- for
example Estonia -- would have to dismantle a much admired edifice of
economic liberalism.

Most of them would have to erect barriers to trade and the free movement
of labor and capital where none existed. All of them would be forced to
encumber their fragile economies with tens of thousands of pages of
prohibitively costly labor, intellectual property rights, financial, and
environmental regulation. None stands to enjoy the same benefits as do
the established members -- notably in agricultural and regional
development funds.

Joining the EU would deliver rude economic and political shocks to the
candidate countries. These would include a brutal and rather sudden
introduction of competition in hitherto sheltered sectors of the
economy, giving up recently hard-won sovereignty, shouldering the
debilitating cost of the implementation of reams of guidelines,
statutes, laws, decrees, and directives, and being largely powerless to
influence policy outcomes.

Faced with such a predicament, some countries may even reconsider their
entry application.

-0-

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