The Financial Times recently brought an interesting topic to my attention: another breaking of ways within the European Union. From its conception, the European Union has been a somewhat shaky organization. Many people lauded the idea as a great step towards global community and unification… but also recognized the inherent difficulties with the proposal. Foremost among them, the fact that the European nations involved in the Union are all proud, sovereign states that have defended their own ideals and culture for untold centuries. So of course, an organization that maintains the sovereignty of each of its members is going to be very tricky to manage without discontent. A prime example is the Euro. It’s been very effective where it’s been implemented. But members like the United Kingdom, Denmark, and Sweden have all found forms of getting around the Euro currency transition in favor of their traditional currency.
While this is important in the inner mechanics of the European Union, it isn’t something world changing in and of itself. It just means as much currency exchange as ever on the borders of these countries. Germany, however, has made a move to exempt itself from the European Union’s latest endeavor that may have much larger repercussions. The proposition on the table is this: the industries of each country are allotted ‘x’ amount of air pollution each year. Of course different industries are going to require less or more amounts of this finite pollution allowance. So there will be an encouraged auction between the companies where the big industries can buy more allowances on their output, and the smaller, cleaner industries can sell their unused excesses as a bonus for minimizing their pollution.
Angela Merkel made a statement that while she supported cutting back on pollution for the benefit of everyone, she wouldn’t participate in this particular program at the sharp cost to German industry. Other countries had expressed their discontent with the program prior to this, but had all agreed to apply the system and try and shape it as it worked. Germany is the first to make a stand outright against this plan. This has raised concerns that other countries will follow suit, attempting to exempt themselves from the program, decreasing its effectiveness or even completely destroying it.
This is undoubtably a stumbling block for innovation in ‘green’ industry in Europe and around the world, but it is also a potential warning call to the European Union. If a single state can simply decide they aren’t inclined to participate in a program, and in so doing drag many other countries with them, then the European Union loses much of its power as a governing power. It becomes nothing more than an assembly that can make friendly suggestions when the European states are in a good mood to listen. Whether this is for the better or worse, only time will tell. I’m inclined to think that the European Union needs to stand its ground and make sure that its members all participate in the program. Not because I’m specifically a Green Earth kind of guy, though I am. Just because they’re going to lose a lot of face otherwise. Whether they do this with friendly negotiations and talks, or attempt to play a powerful trump card and coerce members into activity is a decision that they have to make.
