An ever-deeper democratic deficit

Economist
May 26, 2012

For the past six decades, steps forward to greater European union have taken place at moments of incipient crisis. None, though, has been taken in a time of disaster. The next leap in integration looks set to change that. All the plausible solutions to the self-inflicted mess of the euro crisis require a significant new level of fiscal and potentially political union, not least because some countries, such as Germany, actively want greater political union and see it as the price of their co-operation. In order to make any such solution work, Europe’s elites will have to address a problem they have long shirked: that of the democratic deficit at the heart of integration. And they will have to do so under the worst of conditions.

The past week’s near-continuous high-level summitry has done little to reduce the risk of a Greek exit from the euro, which rose to higher levels than ever after the inconclusive results of the country’s election on May 6th. The risk shows no signs of receding before the next vote, on June 17th. After that, risk may become reality (see article).

A consensus is slowly emerging that, whether a Greek exit is to be averted or weathered, there will have to be a greater level of integration in the euro zone, with tighter constraints on the freedom of national governments. Some countries, under some conditions, may put up with seeing their governments so constrained for a while: Italy and Greece (until recently) have had unelected, technocratic prime ministers, in large part as a result of pressure from outside creditors. But elsewhere, and in the long run, people seem likely to want to do the constraining they think proper by means of the ballot box, rather than having it forced upon them.

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