EU/Eurozone – Start Again or Plod On? – A New Government

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EU/Eurozone – Start Again or Plod On?

A New Government

The current machinery of government at the centre of the EU is probably the most contentious part of the whole EU experiment as far as the people are concerned. This structure was originally sold to the people as a mechanism to provide commonality where there is contention, provide interfaces between the nation states, and provide a common interface to the outside world. However the resultant structure mercilessly encroaches upon the sovereignty of the nation states, imposing rules upon the people of the nation states that the people expect to be considered by their own elected Parliament. What we actually have is a creeping expropriation of sovereignty of the nation states by an essentially unelected and faceless body – a United Europe through the back door, and without the consent of the people.

Currently each nation state has a national government elected by the people to represent their interests, debate requirements, pass laws, and secure the sanctity of the constitution. So why is this expensive body in Brussels assuming dominion over national policy? It is true that within each nation state the people appoint MEP’s to the Brussels machine to represent the people and reflect their views, but this is a materially imperfect system for a number of reasons. Firstly do the people take the election of MEP’s as seriously as they do their own Government – the evidence suggests that people still do not understand the process, and do not really see how it affects them. In the UK the election of MEP’s is not concurrent with a general election, and indeed can occur in the middle of a term of the current national government – the time at which the people can be expressing dissatisfaction with the national government. Thus it is not unreasonable to assume that the bulk of MEP’s could be members of the opposition party in the national government. We only need to look at the problems in the USA at this time as a result of the House of Representative being controlled by the Republican Party whilst the Senate is controlled by the Democrats – they neutralise each other, and thus the policies presented by the President. Is this really a mechanism for true representation of the people?

There are many forms of government systems operating in the world today. This blog attempts to define a parliamentary system of government suitable for a United States of Europe, and which embraces all of the relevant aspects of a modern and relevant democratic nation state. But first let us try to find an appropriate model upon which we can define and layer a government structure for our United States of Europe.

Without exhausting the word count of a blog in examination let me suggest that there is one tried and tested model which is accepted throughout the world – a multi-layered corporation. At the very top there is a Chairman/President, a Chief Executive, and a Board of Directors. For each subsidiary there is also a Chief Executive, and a Board of Directors. Typically the Chief Executive and Finance Director of the subsidiary will also be Board members of the parent company. For those who immediately say that these Boards are not elected please think of a public quoted company where the Board of Directors are elected by the stakeholders. As for those who say that a government has to consider welfare issues that would not be common to a corporate, I would remind them that until recent times there was most certainly a serious welfare dynamic to most corporates. It is only since the 1980’s, when shareholders became more global and thus faceless that profit/dividend became the driver and thus welfare provisions substantially reduce – but I have not lost hope that this will return as part of corporate responsibility.

The classic role of the Chairman/President is ambassadorial in that this person represents and promotes the face of the organisation to the outside world. This role is generally appointed, and need not be an executive role.

The Chief Executive has the responsibility to manage the corporation with the help of the directors, so his role is essentially inward looking. This role tends to be elected, on merit.

Can we develop a nation state government for our United States of Europe based on this known and trusted model?

A democratic nation state consists of a framework of government freely elected ‘by the people, for the people’ with oversight from an independent judiciary built on merit, not election.

In parliamentary systems of government, the legislature is formally supreme and appoints a member from its house as the prime minister who acts as the (chief) executive.

The primary components of a legislature are one or more chambers or houses: assemblies that can debate and vote upon bills. In most parliamentary systems, the lower house (Parliament) is the more powerful house while the upper house (Senate) is a chamber of review and advice.

Into this framework I propose to add an independent Central Bank whose duty is to manage the financial integrity of the country, issue and manage government debt, set interest rates, and maintain inflation within agreed guidelines.

The easiest way to differentiate the roles of the Parliament and the Senate is that the Parliament is the ‘voice of the people’ whereas the Senate is the ‘voice of experienced, considered reason’. Members of the Parliament are elected, and members of the Senate are appointed on merit.

In this structure the corporate Board of Directors is the Parliament. However, in a corporate the members of the Board are tried and tested professionals. Elected members of Parliament can come from all walks of life, are untested, might have no previous experience, and could just be career politicians. This does not promote the image of a safe pair of hands, thus the Senate (non-executive directors). The people in the Senate would comprise, by appointment and certainly on merit, people from a diverse range of backgrounds who have shown exception skill and wisdom in their life. This chamber would also contain representatives from the judiciary, and from each major religion to ensure that the Senate can be seen to have experience and integrity throughout the spectrum of the issues likely to be put before it.

Having an elected second chamber has proven a flaw in the USA constitutional structure resulting, on occasions such as now, with deadlock between the houses. The hereditary structure in the UK has all but been abandoned, but to move to an elected chamber would be a terrible mistake. A glimpse of this can be seen by the nature of the appointments to the House of Lords today. I think that the second chamber should have a committee that seeks out appropriate members, and then invites these people to become members of the chamber. Parliament should not be free to appoint their friends and party donors to the Senate.

Clearly a corporate board of directors does not consist of as many people as would be members of Parliament so a group of ministers would be selected, on merit, to form a cabinet under the prime minister, and these cabinet members would assume specific roles of government much like directors in a corporation.

How would this work in our United States of Europe? Firstly let us assume that each member state would retain a state assembly to address issues specific to the member state. Subsidiarity is a fundamental pillar of democracy, albeit that many countries struggle to find a balanced application of this principle. However a member state assembly would be the minimum layer underneath Parliament within this system, and in the UK, for example, all that would change in terms of subsidiarity would be that the current parliament would reduce to a member state assembly.

The electoral process needs to be relevant, and connect the people to their government. Therefore I am suggesting that only one set of elections occur for both the member state assembly and the Parliament. I further suggest that we can maximise the competence and integrity of the Parliament by changing the way that MEP’s are selected. My proposal is that the member state assembly be elected as per a general election, resulting in an incumbent executive and legislative. The majority political party would form a cabinet of ministers. This cabinet of ministers would then form the core of the representation in Parliament, spending a part of each month in Parliament, and the remainder in the member state assembly. In order to retain proportional representation in relation to population this core can be increased from other assembly members.

This structure ensures that the most capable political talent from each member state become the parliamentary representation of the people. The Prime Minister of Parliament would be determined by selection from the prime ministers of each member state.

I would suggest that Parliament and the member state assemblies serve for 5 year terms, and elections within each state occur at the same time. I also suggest that each member state be restricted to 3 political parties; a left of centre (Democrat), a right of centre (Conservative), and a centrist (Liberal). Fragmented multi-party governments have shown themselves to be ineffective because of the level of compromise to build a government – more compromise means more mediocrity and little effective output – Germany and Italy are good examples of this problem.

The benefit of this system is that it:

  • directly connects the people with their Parliament;
  • ensure the best possible members within the Parliament;
  • ensures direct connectivity with the member state assemblies;
  • is infinitely cheaper than the existing system.

You will note that I have not mentioned the Chairman (head of state). I think that an executive head of state is not necessary, and very difficult to sell to the people. Furthermore my previous blog of Republic versus Monarchy is a serious consideration in this process for a number of very relevant reasons. When considering, for example, an elected President of such a large and diverse culture country my thought go to the circus that occurs in the USA every 4 years. The process of selection takes 2 years costing an obscene amount of money. If an existing President is seeking re-election then they are not focussed on their role as executive for half of their term of office. The corporates who fund the campaigns expect a return on their investment should their candidate win, thus corrupting the democratic system. Furthermore a challenger for President would need to be wealthy in their own right thus limiting applications. This is not the way for the United States of Europe.

I commend this political structure to the community for analysis and comment.

Thank you for your continued interest in this European venture.

This blog is part of a series of blogs called ‘EU/Eurozone – Start Again or Plod On?’ and which examine the framework for a truly United States of Europe, and what would be needed to achieve it. Look at the archive index to find other blogs in this series.

I hope that you found this blog interesting, and will give it the ‘thumbs up’ below. You can also use the share options below to share your interest in this blog with others you know.

These blogs are intended to provoke thought and ideas so I look forward to any comments about the content. Just move to the beginning of the blog, click on ‘Comments’ and you can record your views, or ask questions.

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EU/Eurozone – Start Again or Plod On – Republic versus Monarchy

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EU/Eurozone – Start Again or Plod On?

Republic versus Monarchy

There has always been a general view that a united Europe will be some form of a republic, but is this a reasonable and widely held premise? Most of the republics around the world leave much to be desired in the stature of its president, or the continuity of national pride. This subject should not be an assumption for the future of Europe, but tested with the people, as should every facet of such a European integration process. In this blog we will quickly look at this issue in order for people to look at the possibilities.

The difference in formalising a United States of Europe and our template of the formation of the United States of America is that, in the case of the USA, it was a completely new venture, whereas Europe has functioning nation states with much historic ‘baggage’, extending back centuries in some cases. This ‘baggage’ will be a major emotional issue in creating a united Europe, as has been shown in the current EU/Eurozone model. Furthermore the integration of Europe looks more like a creeping expropriation of the sovereignty of nation states conducted by a faceless, unelected bureaucracy rather than an open integration by a consensual electorate. It might be worth mentioning that some of the countries of Europe seemingly have a long history but, in fact their history, as the nation state is today, can be little more than 100 years. I think of Italy and Germany as examples.

As an example of the legitimacy of this subject the UK has a constitutional monarchy having a current popularity rating around 87%. A further complication is that the Queen has a constituency of some 1.6 billion people throughout the world spanning some many countries including Canada, India and Australia. If reports from the USA are correct a free vote amongst the American people to adopt the English monarchy as the constitutional monarch of the USA would increase this constituency by a further 300 million or so (there were some 26 USA TV channels in London for the Queen’s Jubilee celebrations, and the marriage of William and Kate). Compare this with the total population of the existing EU member states, and the fact that if it came down to a choice by the citizens of the UK between full integration within the Eurozone (essentially becoming part of a republic) and retaining our monarchy – retaining the monarchy would certainly win. We are already seeing this obstacle in the attempt by the Scottish National Party to devolve Scotland from the UK – most of the people of Scotland do not wish to lose their link to the monarchy.

A recent referendum in Australia regarding changing to a republic resulted in an overwhelming vote to retain the monarchy such that any further discussion has been shelved during the lifetime of the Queen.

For the republicans amongst you the reason why the UK has such a high regard for the monarchy can be readily defined in a simple example. Since WWII the UK has had only two what could be called ‘world statesperson’ leaders, namely Winston Churchill and Margaret Thatcher. In between these two statespersons the UK has endured political leaders ranging from awful to passable. However the line was held throughout these periods by the steadfast presence and continuity of the monarchy with a Queen who has shown herself to be an extraordinary stateswoman. And it only costs some 50p p.a. (Euro 40 cents) per head of population of the UK to retain this safety net – no more expensive than a President, or even a cup of coffee. Politicians come and go, but a steadfast and committed monarchy maintains continuity, even in the bad times.

There is also a much loved and active monarchy in Spain, and there are more low key monarchies in other European countries such as The Netherlands, and Sweden.

I am reliably advised that many Romanians would happily restore their monarchy which was very closely connected through marriage to the British and former German monarchy. Romania has maintained the stunning Peles Castle at Sinaia throughout the communist years, and it is still functional today.

In contrast look at the shambolic collections of political heads of state in the republic states of Europe and the USA over recent years, riddled with sex scandals, fraud, and abuse of office. Do any in Europe stand out as a true ‘world statesperson’? I would willingly concede to Helmut Schmidt, but then I start to struggle unless I have missed anyone. Angela Merkel is showing some mettle, so the jury is still out with respect to her.

It would be very interesting to conduct a census of all European people about the restoration of a constitutional monarch based on the English model (being the oldest and having by far the largest constituency), and which was originally German (House of Hanover) in any event. As some countries already have a monarchy, and I think that I am safe in saying that Poland would vote in favour, I would not be surprised if the odds are in favour of a monarchy, especially if the various royal families can agree how to integrate into a single constitutional monarchy for Europe.

Thus I suggest that we cannot assume that our new United States of Europe will be a republic if the people have their say on the matter. Indeed we cannot assume that all nation states within the current structure consider a presidential democracy as a preferred option.

Could a monarchy of Europe be a focal point for integration by the people, especially as it would not be soiled by mistrust of the political process? When the politicians are totally out of favour the people need something they can look to for that comfort factor.

What do you think?

Thank you for your continued interest in this European venture.

I hope that you found this blog interesting, and will give it the ‘thumbs up’ below. You can also use the share options below to share your interest in this blog with others you know.

These blogs are intended to provoke thought and ideas so I look forward to any comments about the content. Just move to the beginning of the blog, click on ‘Comments’ and you can record your views, or ask questions.

EU/Eurozone – Start Again or Plod On? – Model Outline

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The EU/Eurozone – Start Again or Plod On?

A Model Outline

Following on from my Intro blog yesterday what is the future for Europe – do we need a new European model, or can we fix the existing model? To date the politicians have held the cards, but is it now time for the people to speak. Even the countries of the former Soviet Union now have had enough time and understanding to know what is possible, and what they would like to see as a sustainable future. Do we revise the current model, or just as with the EEC and the ERM, we put it down to experience and start again with the benefit of hindsight? I am looking for input so I would like to start with a provocative statement or two as I would like to encourage discussion and comment on the future of Europe for our children and grandchildren.

I hope that this will be an evolving blog where interested parties feel that they can contribute to the debate with comments, and be heard. Non-Europeans are welcome to participate as all input is valuable input. The resulting model for Europe should not be insular, and it is important both in relations and trade that the outside world sees a friend and partner with whom it can engage politically, and conduct business.

For the purpose of this discussion can I propose that we call our new model the United States of Europe. I have an utter dislike of any name using the word ‘Federal’ (sounds like a police state), and any reference to the word ‘Republic’ automatically removes any debate about a monarchy, and I am far from convinced that many people in Europe feel that a republic is the only option. Furthermore I would suggest that the United States of Europe is fully inclusive of all countries in Europe, as with the United States of America.

So let us start with the provocation.

  • I believe that it is a fact that the EU has no democratic legitimacy. Has any member state to date asked the people to vote on whether or not their country should become a member? This should not be confused with referendums for treaty ratifications.
  • For over 2 years now the politicians have attempted to solve the financial problems within the Eurozone. I would suggest that if you put some of the best banking minds into a room for 4 – 6 weeks, devoid of politics, vested interests, and with open minds, workable solutions to the financial problems of the Eurozone can be achieved. The pills may not be sweet, but they would be equitable and sustainable in the long-term. For example Germany was by far the economic winner with the introduction of the Euro – now it must deal with the appropriate reciprocity.
  • We must start with the tenet that a democracy consists of a framework of a Government freely elected ‘by the people, for the people’ with oversight from an independent judiciary built on merit, not election. This Government needs to build a social and legal framework based on the rule of law, respect for human rights, free speech, respect for International law, and equality for all. In return the electorate need to respect the law, and take responsibility for their role in society.
  • A secure, self-sufficient, free market economy consists of a sustainable supply of raw materials and energy, a relatively cheap labour force, innovative skills (excellent education), technology transfer skills, manufacturing, marketing, with stable and effective financing (banking).
  • The existing EU/Eurozone is built on political, over economic, sensibilities, fractured by pandemic compromise, with political and national interests as serious constraints to sustainability.

A cursory comparison of the above with the structure of the current EU/Eurozone will reveal that the current structure shows that it:

  • fails to satisfy democratic legitimacy;
  • is incapable of resolving the existing financial problems, and responds too slowly in any event;
  • does not meet the recognised basic parameters of a democracy;
  • does not meet the requirements a self-sufficient free market economy; and
  • is constrained by the vested self-interest of the political leaders of the member states.

Rather than start by debating ‘Start Again or Plod On’ I would suggest that we start with a blank sheet of paper and identify what the people see as a credible European integration by building a model of an equitable and sustainable United States of Europe. Having developed and agreed such a model we can then compare it to what we have today to determine if we can adapt what we have to what we need, or whether we adopt our new model and move into it, leaving any unnecessary baggage behind in the old model. The other option, which is certainly on the table, is to completely abandon European integration.

Please forget ‘what is’ today in your thinking as details such as what side of the road we drive on in different countries is irrelevant to the future of our children and grandchildren. At the risk of alienation the green lobby can we also ignore what could be in energy terms and just look at the resource base that already exist. Too many people in Europe are currently below the bread line, distressed, and hungry. This problem must be addressed as a priority over any new initiatives. Indeed one of my drivers for this exercise is to divert wasted money in the existing EU into growth generation to create jobs for the millions currently without income. Dignity and self-respect derive from self-sufficiency, not charity. Also let your mind have free rein when considering all of the components of a self-sufficient free market economy. I would suggest that there are countries that could be invited to the party to strengthen self-sufficiency.

The classic method of solving complex multifaceted problems is to:

  • Understand the problem, and subdivide into logical components for analysis
  • Analyse each component part – Create an ideal solution
  • Adapt the ideal solution as little as is needed to make it work

When considering the way forward could we concentrate on what we need in our model to create a sustainable, prosperous, and equitable future for all, rather than what we want. Many people want a Ferrari car, but they do not need it to live their life in peace and prosperity.

I would like to propose 2 templates to guide us through the process. The first is the creation of the United States of America in terms of some of the hard decisions and compromises that had to be made to ensure inclusion of everyone. As the creation of the USA had the benefit of no historic baggage to deal with I want to use Switzerland as a second template being a country which functions in 4 languages, has a 700 year history, not currently fully compliant as a democracy, and has an unconventional government structure. If anyone would like to propose any other template I am open to suggestions.

In order to make the process manageable I propose to load a series of blogs over time, each one addressing a separate pillar of democracy, e.g. structure of government, judiciary & legal system, taxation, etc and throw in other considerations such as common language, nationality, republic versus monarchy etc. to complete the whole picture.

This is a serious attempt to find answers to the problems that politicians seem unable to resolve. Having spent some 30 years addressing complex problems using lateral and progressive thinking I can attest to the methodology which, on first sight appears too simplistic, impossible and/or unrealistic – but they said this about Keynes at Bretton Woods – until they sat and really thought about his ideas. We still benefit from his thinking today. The fall of the Berlin Wall was an unthinkable piece of lateral thinking after too many years of political bluster. I believe that the collective thinking of people from all walks of life seriously interested in the future of Europe can contribute to solutions to the problems that face Europe. If you have friends or contacts that you feel would find this process of interest then get them involved as well. Think the unthinkable, and enjoy the process.

I will attempt, in no particular order, to start the first discussion blog in the next few days. If you click on the ‘Follow’ tag you will receive an email as each blog is posted.

Thank you for reading my blog, and I hope that you feel it worth the effort.