Tuesday, October 6, 2026

Reforming E.U. Governance: On the States’ Conflict of Interest

A conflict of interest is the privileging of the interest of a part, by that part, over a conflicting broader interest, such as the public good. In exploiting such a conflict, a part of a whole puts the part’s own interest, and therefore benefit, above those of the whole to which the part belongs. A state government in the E.U., for example, could veto governance reforms of the federal government because the state would benefit in some way, even just in terms of retaining its portion of governmental sovereignty, even though the E.U. itself would be harmed. Exploiting a conflict of interest is selfishness in governance. The underlying assumption is that the part is greater than the whole. Aristotle warns of such misordered concupiscence, which is the placing of a smaller good above a higher good.

In October, 2026, the European Commission—the E.U.’s executive branch—introduced far-reaching proposals to the E.U.’s governance system with an eye to the accession of a slew of new states being likely in the years to come. Marta Kos, the Enlargement Commissioner, said at the time, “The main question has been: is the EU fit for another enlargement?”[1] I contend that the answer to this question depends on whether the officials of the state governments were willing to resist the temptation to exploit their personal and institutional conflicts of interest, for the proposed reform would transfer more governmental sovereignty from the states to the Union. No one who loves power gives it up easily. The countries in the U.S. at its outset “bit the bullet” in agreeing to give the Union some limited (enumerated) powers (or competencies) by giving them up. The war had ended, so united military action was not the motive; rather, the Americans had realized that the confederal Articles of Confederation (1781-1798) had not worked because the states were still fully sovereign and thus any one could block federal legislation. Unlike the U.S., the E.U. has been federal rather than confederal—dual rather than full state sovereignty—since its founding in 1993. Even though there had been amendments since 1993, the disproportional, obstructive amount of governmental sovereignty of the states as of 2026 was arguably counter to the effective governance at the federal level. By comparison, the disproportional sovereignty of the American members thirty-three years after 1798 was similarly problematic. The E.U.’s plight in 2026 was similar to that, rather than to the shift from the Articles of Confederation to the adoption of a federal government in the U.S. in 1789 because the E.U. has had dual (i.e., state and federal) governmental sovereignties since 1993. 

The specific reforms may be different, but the E.U. and U.S. are indeed comparable. Labeling E.U. states as “members” and the E.U. itself as if it were a “bloc” have been used as obvious tricks to obscure and outright deny the comparison rather than merely to appease Euroskeptics as if they would suddenly have temper tantrums were the E.U. explicitly labeled as a federal (not even confederal!) political union of states. While at Yale, I spoke to the E.U. ambassador to the U.S. on this point; she was concerned about the impact that use of the correct labels would have on Viktor Orban in the E.U. state of Hungary. I told her that she was overestimating what he would do, and enervating the E.U. (especially expectations regarding what the E.U. could do) in the process by allowing Euronews and other media companies to incorrectly use “bloc” to refer to the E.U. I have zero influence.

In October, 2026, among the Commission’s proposed reforms was the “idea of extending qualified majority voting . . . particularly in foreign and security policy, where a veto [by one state] can undermine the EU’s ability to project geopolitical weight abroad.”[2] The political power in 27 states all sailing in the same direction in a Union is one of the main benefits of the E.U. itself, so retaining the veto of the states in the European Council and the Council of Ministers has enervated the E.U., as if tying one of its arms behind its back. Unfortunately, the proposal itself is lame because the Commission was proposing merely to identify “areas where so-called passerelle clauses could be activated, allowing the [European] Council to move from unamimity to qualified majority. Activating those clauses, however, itself requires unanimity,” meaning that one state could veto the change on any legislative or policy proposal to which the passerelle clauses apply.[3] When something is so obviously stupid, the expression, “you can’t make this up” applies—meaning no one would imagine such pathetic stupidity to be possible for a human being. The reason for the lame proposal is doubtless the refusal of governors of the states to give up the power of the veto even though even at 27 states, the E.U. already needed qualified majority rule on foreign and defense domains. The refusal is essentially the exploitation of a conflict of interest, both in terms of personal and state power.

Similarly, the proposal by 11 states in September 2026 “to explore curbing obstructive foreign policy vetoes on the basis of sincere cooperation, notably through greater use of constructive abstention,” is lame.[4] Were he still the governor of the E.U. state of Hungary, Viktor Orban would have laughed at pressure to merely abstain rather than wield his state’s veto. The proposal ignores the nature of raw political power and thus should not even have been proposed.

The Commission’s proposal to curb the state veto on 150 steps in the accession process, and the proposal “to make more use of enhanced cooperation, which lets at least nine member states pursue deeper integration on matters of crucial or strategic interest where blockages exist” are more realistic.[5] Allowing the veto only at the very beginning and at the end of a potential state’s accession process makes so much sense that allowing the veto on each of the 150 steps points to the excessive attachment to power at the state level at the expense of governance and administration at the federal level. The conflicts of interest described above could thus be expected, and yet the Von der Leyen administration could be said to be sidestepping rather than confronting the reality of likely exploitation at the expense of the Union.

Another way of seeing the excessive attachment to power at the state level is by looking at the insistence by the states that each one have a commissioner. Even though the Lisbon Amendment to the E.U.’s Basic Law states that the Commission should have a number of commissioners equal to two-thirds of the states, chosen by “strictly equal rotation” that reflects the interstate diversity in the Union, “the European Council unanimously decided to keep one commissioner per member state . . .”[6] Small states in particular have resisted losing a commissioner, but the underlying reason has more to do with state governments being too desirous of power at the federal level, ironically at the expense of federal legislative and executive activity.

The chances of the reforms passing, given the rather obvious self-interests of state officials and their respective legislatures, were expected to be low even by officials in the Commission when the proposals were announced. “Some things are drafted to be killed,” one E.U. official told Euronews.[7] Lest the state officials be viewed as exorbitantly selfish people childishly refusing to give up any more power, it should be remembered that the process by which the federal level in the U.S. gained power at the expense of the member states in the nineteenth century spanned decades, and extended most notably in the New Deal federal social programs during the Great Depression in the 1930s, so perhaps it is too much to ask the E.U. states to give up their vetoes and their right to their own commissioner within the span of a few years in the mid-2020s under the urgency of enlargement. In other words, perhaps the E.U.’s planned enlargement was proceeding too fast; maybe the matter of adding more states should have been held off until proposals to reduce the application of the state veto mechanism could politically surmount the conflicts of interest existing at the state level, for even with 27 states, the veto in the European Council and the Council of Ministers was already an obstruction, especially on foreign policy and the ability of the E.U. to provide a united defense of the E.U. during Russia’s multi-year invasion of Ukraine.



1. Luca Dertuzzi, “EU Commission Throws Down the Gauntlet to Member States,” Euronews.com, 6 October 2026.
2. Ibid.
3. Ibid.
4. Ibid.
5. Ibid.
6. Ibid.
7. Ibid.

Monday, October 5, 2026

U.S. President Trump Pressures the G7 to Release Oil Reserves

Is democracy more susceptible to being run by large corporations or to mob-rule? I contend that the police and military power of the U.S. eviscerates the risk of a mob of people making much headway against a government. That same power can be used by American governments to enforce policies that are in the financial interests of companies. In fact, some retail companies hire weaponized police employees to enforce not only municipal law (against shoplifting), but also company policies, as if they constituted law and therefore legitimate a police response rather than action by a security guard. To be sure, even security guards act sometimes as if they were police officers, and too many consumers fall for the presumptive ploy to intimidate. Security-guard companies even uniform their respective employees to look like police, even SWAT, officers, as if impersonating a police officer were not a crime. In terms of the American political economy, elected representatives of the American governments looked the other way in whether to invoke anti-trust law to break up large American companies even as gasoline and food prices soared—in the case of food, from 2020 when the pandemic enabled grocery stores to price-gouge, and in the case of gasoline, especially in 2026 when Iran was choking off the Strait of Hormuz. Those representatives as well as the media companies were silent on not only the need for market competition in consolidated industries, but also the excessive power of large corporations—even multi-national corporations, which are not loyal to any country—over elected representatives and their respective appointees. In too many cases, the companies being regulated actually write the law for Congressional committees—an obvious conflict of interest. Meanwhile, the American voters are typically titillated by superficial matters, essentially tricked, as if being oriented to symptoms were crucial to voting. The tricks can include ploys even by a sitting U.S. president to make the economy look better just before an election.

For example, on October 2, 2026, countries in the G7 “agreed to release up to 100 barrels of oil from strategic reserves over four months in a coordinated effort to bring down soaring energy prices, with a particular focus on diesel.”[1] The E.U.’s executive branch “pushed back against what it described as US ‘threats’ to force [the G7] to act.”[2] In particular, the E.U. objected to President Trump’s threat of “a possible US diesel export ban.”[3] That threat worked. As of the following day, G7 countries “had so far released 325 million barrels of oil and oil-derivative products from strategic reserves, from the 400 million barrels promised in March.”[4] Why the apparent urgency? I contend that the upcoming U.S. Congressional elections in early November had a lot to do with President Trump’s motivation, for poll after poll showed that many voters were upset about the cost-push price increases in gasoline and food. Voters with such angst would doubtlessly vote for candidates in the Democratic group, rather than in Trump’s Republican group. So, the president had strong political motive to get gas prices down as soon as possible.

Although the rapid release of 325 million barrels so suggests both urgency and the G7’s compliance in line with Trump’s political interests, the G7 countries had discretion as to when to release both the 325 million barrels and the 100 barrels agreed to on October 2nd. This means that Trump’s political objective could to some extent be scuttled from abroad by G7 countries holding off as many barrels as possible until after the Congressional elections. That such a strategy is laudable can be grasped by analyzing the ethics of the Trump’s ploy.

It would certainly be no compliment to voters in America were they to change their minds in voting simply by a last-minute drop in gas prices. The ploy itself disrespects voters because it is premised on the assumption that they can easily be tricked into voting for the status quo simply because of a brief (and probably temporary) increase in the purchasing power of American consumers from lower gasoline prices. I submit that at least voters who are college-educated are capable of ignoring such expedient political ploys.

It is less probable that even an educated electorate would vote at least in part from having conducted an analysis of structural political-economic factors, such as the price-setting power of monopolies and even oligopolies. A monopolistic company has overwhelming market-share in an industry, whereas oligopolistic industries are characterized by having a few large producers. Both Trump administrations consistently refused to apply anti-trust law to break up the mega-sized American oil companies, the two large companies dominating the agricultural seed market, and the large grocery-store chains (companies). The consolidation of both the agriculture, grocery, and oil industries in the U.S. is at the expense of market competition, and thus possibly lower prices. Whereas in the Gilded Age, Americans were well aware of anti-trust law, such as was used to break up Standard Oil, such law was seemingly non-existent after the Coronavirus epidemic when grocers felt no downward market pressure to lower prices. Similarly, when Iran was squeezing the Strait of Hormuz, the American media was silent on what effects the application of anti-trust law to the few, large American oil companies could have in diversifying supply chains so the U.S. could be less reliant on the Strait, and perhaps then less motivated to bomb Iran. A person looking just past one’s nose rather than farther is more likely to fall while walking.

After the Coronavirus pandemic, American media companies, elected representatives, and even their respective appointees were obsessed with the superficial symptom labeled “inflation,” as if monetary policy were the only thing that could be applied. Price-setting by an oligopoly of a few large companies, and cost-push inflation whether from the price-setting or issues with supply chains, are not due to excessive (relative to GNP) monetary supply. “Inflation” does not distinguish these very different things.

To the extent that large corporations, whether monopolies or in an oligopolistic industry, have too much financial and therefore political power over members of Congress and the U.S. president, the refusal of the U.S. Justice Department to enforce anti-trust law so as to render as many industries as competitive markets is no surprise because corporations are financially oriented to maximizing their market-share. Being able set prices so as to gain what is called monopoly rents is the dream of any CEO, especially if the bonus component of compensation increases with higher profit. So even beyond there being too few competitive markets in the U.S. due to the failure of the U.S. Government to apply anti-trust laws is the even more intractable problem of there being a plutocracy (i.e., rule by private wealth) usurping the democracy. If a representative democracy is not strong enough to counter these tendencies that operate at the expense of the American consumer, then it may be that democracy is more susceptible to plutocracy than to mob-rule; both Plato and Aristotle contend that mob-rule is the bad side of democracy. Trump’s expedient ploy, based on the premise that a short-term, last-minute, drop in the price of gasoline, is two degrees of separation from a policy that goes after the more endemic, structural, problems in the U.S. political economy.



1. Marta Pacheco, “G7 Agrees 100 Million-Barrel Emergency Oil Release amid US Pressure over Diesel,” Euronews.com, 2 October 2026.
2. Ibid.
3. Ibid.
4. Simon Ormiston, “IEA Says 325 Million Barrels of Emergency Oil Release, with 75 Million Still to Come,” Euronews.com, 3 October 2026.