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The critics say that there will be loss of "sovereignty" and as far as I can tell, they aren't completely wrong as there will be a loss of control of interest rates (and borrowing levels?). Of course, these are now controlled by the independent Bank of England, but could easily be brought back into the chancellor's hands. The counter is that in a global economy, national control is worth less than pooled resources. I'm just not qualified to judge that.
I don't think ideas of sovereignty as regards monetary policy are just a nationalism issue. What we should really be concerned with is the most efficient place to control currency. If that is at the European Central Bank level then great. If that is at a regional level (perhaps we need policy instruments to counter asymetric shocks) then that is great too. The important thing is to get away from the idea of sovereignity and national prestige and start thinking in terms of utility. I suppose the problem there is utility for who. Everyone in the same region as you, the same state, the same continent, the same culture, the same planet?
The thing is, that while I do find this convincing I think it is also the reason for much of the considered opposition. I find it quite plausible that closer economic union leads to closer political union. While I might think that this is desirable now, I might not if europe took a political turn to the right. In any case, even if that doesn't seem likely, I think that there is a valid concern about the dilution of our domestic power. I think that on balance it will be worthwhile, but it is a hefty decision to make.
As far as the EU is concerned all economic union type things have always been followed by political union. It has never been the other way round. Is that a good way to build a community? Possibly not, but it seems the only practical one. When you talk about the dilution of "our" domestic power it kind of highlights the problem with nationalism. What to you mean by our? Why should our power be protected? What is so special about it? If I think about the different communities I am part of, or concerned about, or value then I realise that domestic power, laws enforced by national boundaries are something I would gladly vote against. |
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