Winner, I think you already know my position. Economic liberalism is crap. So is every ideology that preaches that only maximizing the amount of money without some (re)distribution is the way to go. That's against the spirit the West European or at least the German society is built on. I challenge the liberal claim that what is good for companies and the rich people is good for the whole society.
Now with reference to the enlargement, we have to recognize that it is economically beneficial to German companies who can now raise their profits even more by conquering new markets and transfering factories etc.
But it is not beneficial to the common man. Real wages are stagnating or declining, poverty is rising, the welfare state is going to be cut even more than necessary, unemployment is still high and we may finally end up with a copy of the American economic system. I'm sorry to say that but for many people in Germany the outlook to have economic policies as liberal as they are in some East European countries is a nightmare.
I also believe that the differences between the old and the new members are way too extreme (you mentioned the Polish wages...).
Now, politically the enlargement will pretty much slow down the European integration. I don't expect any significant institutional reforms in the next decade. 25, or soon 27 members (with a lot of different interests) aren't able to find efficient compromises to deepen the integration (this is even mentioned in your article). It is also known that the majority of the new members are more reserved against deeper integration. There are certainly some people in West Europe who are glad about that, but I'm not. I believe this European Union badly needs political reforms in order to strengthen the ability to solve problems and to get rid of the obvious deficits in the matter of democratic legitimacy.
I'm also under the impression that the new members tend to rather cooperate with the US instead of "Old Europe". I don't say I can't understand that (they certainly have good reasons), but I consider that to be against our interests. This isn't meant to be US bashing, btw. However, I do believe that some members in a situation in which they were forced to choose between the US and Western Europe, they'd side with the US. Now of course, that's pretty much what SN is dreaming about.
All in all, the old EU should have waited longer. Institutional reforms first, then enlargement. Also we could have observed the economic development in East Europeans, look at the development of the wages, the welfare state, make a welfare state worth mentioning a condition for enlargement etc.
But the 2004 enlargement conditions are harming us and will continue to do so. Good for the East Europeans, bad for us. Depending on the development in the next years (which I expect to be horrific), I may possibly change my pro-EU stance or call for a core Europe while letting today's EU degenerate into a second NAFTA. But we'll see...
Winner said:
I guess Polish pensions are a fraction of German ones only because the overall salaries in Poland are about five-times lower as well. In Slovakia (my favourite example
), they have done pension and healthcare reforms and introduced the 19% flat tax. Their GDP growth is about 5,5% and budget deficits are decreasing. In fact, Slovakia would be probably among the first new members adopting Euro.
And who cares about GDP growth when your salaries are about five-times lower? Yeah, they may reach some day the current Western European standards...in about 100 years.
Seems to be more realistic that we reach the Polish level in 20 years...
Problem of the Western (and parts of Central and Eastern) Europe is that the pension systems are obsolete. They must be privatisied (or semi-privatisied as in Slovakia - the government still oversee the companies providing pensions to ensure the people will get their money back) to make it less bureaucratic and more efficient.
Certainly not more for efficient for those who are depending on social security...
BTW one example of so-called unfair behaviour: after introducing of the road toll in Germany and Austria, the trucks from these two countries are usually using Czech roads and motorways, because they are much cheaper. Our roads are mostly in bad condition and this additional damage costs us much. If we were not in the EU, we would simply introduce some kind of a fee for foreign trucks. But because of our membership this option isn't possible. Therefore our only way left to stop foreign trucks crowding our roads is to increase the overall fee for ALL trucks, including ours. But our transport companies don't have enough money for that, their capital is much lower than capital of foreign (western) companies. It's them who will suffer.
There are not many countries in Europe which suffer from that much foreign traffic than Germany (because of the position in Central Europe). Who do you think pays for our environment, roads etc.?
I'm glad that the road toll finally works.
Also, a new 'Euro' language could be created - imagine that
Obviously, western welfare state economies are UNABLE to compete with n.m. countries. Western Europe (except Britain and Ireland) stagnates, while the Eastern grows rapidly. What other proof you need to admit the welfare state is inefficient?
