Guyanese Online

Europe is overcrowded with people and with nations. Six decades ago, the need to suppress the dangerous forces of nationalism led to the unprecedented political, economic and social experiment now known as the European Union. The hundreds of thousands of EU citizens working across the Continent and the lack of border controls between member states show that the experiment has been successful in many ways. However, rising nationalism, pervasively high unemployment and a growing sense of frustration with governing elites also highlight the serious limitations of the European project. Over the past 12 months, I have traveled extensively throughout Europe, observing firsthand how the global economic crisis is reawakening dormant trends along the Continent’s traditional fault lines.

The crisis is having an uneven effect on EU member states because the eurozone locks countries with different levels of economic development into the same currency union. Europe’s geography helps explain these differences: Countries in the south have traditionally dealt with high capital costs and low capital-generation capacity, while countries in the north have seen the opposite.   Continue reading →