Vision of Europe’s future

Posted on 18. September 2012

by Mihails Kozlovs

Mihails Kozlovs NEWWhat is the image of Europe in 20 years time? Is European Union — just a middle stage of a process of unification of political, economial and social  environments? Or are we at the grassroots of a change to counter direction to separate national states? Nowadays agenda of Europolitics is much more complicated, than just managing financial problems of Greece, Spain and Portugal, it is about future governance in Europe- dealing with common european financial stabilisation process.

Economy is in a non-stop search for raising effectiveness and competitive advantages – for last 20 years it was shifting. In the early 90s European business was moving their production plants to Hungary- cheap labour gave an opportunity to double the revenues. Economical advantages of European countries are still playing a significant role in geo-placing of startups and formation of a new buisness structures. But with the re-discovery of Eastern market potential, majority of European capacities were moved to China. That lead to at least doubling the revenues and capacities. So majority of the production now is taking place in China. Economy is growing, the Gross world product(GWP) exceeded 70 trillions USD 1 in 2011,while in 2000 it was only around 40 trillions USD. So it almost doubled. But what is population – average people- middle class gaining from such a huge economical growth? Are people becoming richer?

In reality the gap between rich and poor is just growing. Inequality is just raising. 1% of adults alone owned 40% of global assets in 2000 2. Gini coefficient which measures the income inequality is terrifying. If zeero reflects perfect income equality, where everyone makes the same, then a score of one reflects an economy where one person has all of the money and everyone else has none. The world gini index in 2005 was 0,65, which represents significant concentrations of wealth, extreme poverty, and a limited middle class. In Europe gini index varies from less than 0,25 in Sweden to up to 0.39 in Baltic countries – Latvia, Lithuania and our ‘inequality friend’ – Portugal 3.
And the tendency is not the most positive one. Current economical growth is concentreted in the hands of few. But how to redistribute the wealth equally- this is the question that EU should be dealing with economically and politically. We need a change of economical system. People need to be motivated and the ‘economical discrimination’ represented by gini index, should be tackled.
Unification of Europe and moving to federal states inside the EU is one of the ways how to organize Europe and prepare for competition on global market. The potential in forming United States of Europe (USE) or United Nations of Europe (UNE) is a possible way for a successful player in globalised world. It doesn’t matter how will we call it USE or UNE, but European-minded people, new generation of europeans need urges for new environment. People who rediscovered a completely unlimited union – Europe with huge possibilities and potential- they know what european values are worth.

Footnotes

1. http://en.wikipedia.org/wiki/Gross_world_product
2. http://247wallst.com/2012/05/31/ten-states-with-the-worst-income-inequality/
3. http://en.wikipedia.org/wiki/File:GINIretouchedcolors.png