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"If the euro fails, it's not only the currency that fails but much more, it's Europe that fails and with it the idea of the European Union." On 13 May, Angela Merkel made no bones about what she believes to be at stake in the current crisis. With the threat of sovereign debt default hanging over Greece and other European countries, the EU has entered a period of transition that will result in radical change.
The 750-billion euro bailout announced on 9 May brings to mind the Marshall Plan devised to rebuild Europe, which lay in ruins in the aftermath of World War II. Today it is the structures created by 60 years of the European project which may soon lie in ruins. The Franco-German partnership, which has been the driving force in Europe has run out of steam, because the other countries of the Union are not willing to follow its lead unquestioningly. Paris and Berlin also appear to be increasingly divided over the form the EU should take and the goals it should adopt. The European social contract with its relatively strong welfare state, which has traditionally been accepted by conservative parties, may soon be undermined by austerity measures required to safeguard economic stability in the 27 member states. At the same time, while the intergovernmentalism that has characterised the administration of Europe is now an obstacle to the implementation of coherent and effective policy, federalism has yet to win the support of voters in member states — a fact currently highlighted by the response to the Commission's proposal to vet member state budgets.
What should be done? In 1950, three years after the launch of the Marshall Plan, Robert Schuman proposed a truly novel initiative to pool coal and steel resources, which gave a new meaning to the reconstruction of Europe. Today, in a world of technological innovation, change could be driven by the open and transparent networking of socio-economic actors across the continent with a view to the creation of policies closely aligned with the aspirations of Europe's citizens. In their efforts to combat the crisis, Europe's political leaders must do all they can to demonstrate a capacity to listen to voters and a willingness to overcome outmoded ways of thinking.
