Showing posts with label Von der Leyen. Show all posts
Showing posts with label Von der Leyen. Show all posts

Saturday, February 14, 2026

Mutual Cooperation as Insufficient as E.U. Defense Policy

The words mutuality and cooperation have positive connotations politically, whereas divisive and exclusive do not. To be sure, mutual cooperation has the drawback of relegating competitiveness, which can foster greater efficiency and effectiveness. In the policy domain of defense, however, wherein nuclear weapons live, competition between weaponized polities can be dangerous and thus not worth any improvements from competing. The Cold War in the twentieth century attests to the superiority of mutuality and cooperation at the international theatre wherein polities act as sovereign militarized entities. Within a federal Union, however, relying on the mutual cooperation between states is, I contend, woefully deficient and inadequate. In fact, relying on states to assume the burden of defense can lead to the violent break up of a Union, as was dramatically demonstrated in what some Americans have called the War between the States (1861-1865), but is more accurately called the war between the U.S.A. and the C.S.A.(the Confederate States of America). Two political unions of very different balances of power between the respective federal and state levels of governance. It is precisely with this historical example in mind that the comments made by E.U. (Commission) President Von der Leyen at the Munich Security Conference in February, 2026 should be analyzed. Relying in going forward from that time on the E.U. states to build up their respective military forces, or militias in American-speak, under the assumption that those states would mutually cooperate military is a very risky strategy for the E.U. at a time in which its cousin across the Atlantic Ocean was pulling back from Europe in terms of military protection.

Von der Leyen’s notion that the E.U. could rely on its states in defense (as well as foreign policy) must contend with reservations previously made by Mark Rutte, NATO’s Secretary General, on Europe being able to defend itself without American cover at least in the medium term. Specifically, Rutte had opined just a month earlier, “if anyone thinks here, again, that the European Union, or Europe as a whole, can defend itself without the US, keep on dreaming. You can’t. We can’t. We need each other.”[1] Still the aggressor in Ukraine, Russia’s Putin was still a reality check on European “deams” of self-sufficiency in defense. Even so, Von der Leyen limited the E.U.’s enhanced defense-capabilities to reliance on its member-states. “I believe the time has come to bring Europe’s mutual defence clause to life,” she said. “Mutual defence is not optional . . . it is an obligation.”[2] She was referring to Article 42.7 of the E.U.’s basic law, which “states that ‘if an E.U. [state] is the victim of armed aggression on its territory, the other E.U. [states] have an obligation to aid and assist it by all means in their power.’”[3] This article is similar to Article 5 of the NATO international alliance. Besides ignoring the qualitatively and quantitively closer integration of states in a federal Union, copying the article of an international alliance leaves open the greater possibility—one that was foreseen by the American Founders on that Union being in part to prevent internecine wars between the states—that E.U. states could utilize their bolstered militaries to fight each other rather than just cooperate in a mutual action to push Russia out of Ukraine. In other words, Von der Leyen’s decision to rely on Article 42.7 rather than propose a federal army capable of united action beyond mutual cooperation (and to aid in the cooperation of the state militias) ignores the qualitative difference between a federal Union of states (i.e., European integration) and an international alliance. Besides the greater likely of conflicts between states in a Union, the E.U.’s foreign policy competency could lead to offensive rather than merely defensive united action, as for example could have been waged in Ukraine to push the Russian troops out in the first months of that invasion. In other words, the fact that governmental sovereignty in the E.U. is divided, albeit too unevenly, between the E.U. and the state governments means that relying on mutual cooperation between the states for military action is insufficient and even arguably contradictory. The latter treats the E.U. as it were like the U.S.’s Articles of Confederation, under which the 13 states were sovereign countries. Even without the dual-sovereignty that the E.U. federation enjoys, General Washington was (barely) able to hold together a continental army rather than rely on the mutual cooperation of the armies of the 13 American countries in that Union. How much more should the E.U. have a federal army, as per the dual-sovereignty-feature of its federal system! Lest it be countered that the E.U. states were still sovereign in 2026, the voting method of qualified-majority itself represents a transfer of sovereignty to the federal level, as a state could (and has) found itself on the losing side of those votes.

Finally, there is the danger in relying on the states to develop their own nuclear-weapons capability rather than assigning control of those weapons to the federal level institutions, including the European Council, which represents the state governments at the federal level directly. As Rutte said about European sufficiency in defense, “You’d have to build up your own nuclear capability” because “you would lose the ultimate guarantor of our freedom, which is the U.S. nuclear umbrella. So, hey, good luck!”[4] 

I would simply, add, good luck with Vickor Orbán of the E.U. state of Hungary having nuclear weapons as leverage against other states and even the ECJ and the Commission as they try to punish the Hungarian government for violating E.U. law. Moreover, good luck trying to minimize the chance that any E.U. state might use its strengthened military might to invade another state, with no federal army to push back the aggressor. Especially in the context of years of the Russian invasion of Ukraine, Von der Leyen’s misjudgment in stopping at Article 42.7 is startling, especially as her speech came shortly after Mario Draghi’s speech urging more federal competencies in the E.U. to strengthen the federal system from being too dominated by its states at the expense of united action that goes beyond even mutual cooperation.


1. Alice Tidey, “Von der Leyen Rebukes NATO Chief over ‘No Security Without US,’ Calls for European Mutual Defence,” Euronews.com, December 14, 2026.
2. Ibid.
3. Ibid.
4. Ibid.

Saturday, January 10, 2026

On the Role of the European Parliament: The Mercosur Treaty

With the European Council, which represents the E.U. states, having passed the Mercosur free-trade treaty by qualified-majority voting, the legislation went on to the European Parliament, which represents E.U. citizens, to vote on final passage before being sent to E.U. President Von der Leyen for her signature. From the standpoint of this standard legislative procedure, it is significant that immediately following the vote in the Council, which is roughly equivalent to the U.S. Senate, efforts were being made to essentially side-step the Parliament, which is equivalent to the U.S. House of Representatives. Von der Leyen’s plan to sign the treaty once it passed in the Council reflects both the disproportionate power of the state governments at the federal level in the E.U. and the fact that the U.S. House is excluded from voting on treaties, whereas the U.S. Senate votes to give its consent to them before the U.S. president ratifies them (or not).  

On 9 January, 2026, the European Council voted by a super majority representing 65% of the E.U.’s population and 55% of its states to approve the Mercosur free-trade treaty with four countries in South America. President Von der Leyen had completed the negotiations on the treaty two years earlier so E.U. companies could “gain access to a market of 280 million consumers . . . where some 30,000 E.U. firms” were already operating.[1] A massive free-trade area with a combined population of 700 million inhabitants would dwarf NAFTA (the North America Free Trade Agreement). It is no wonder that on the heels of the Council’s vote, President Von der Leyen wrote in an official statement, “I greatly look forward to signing this landmark deal . . .”[2] Not so fast. The approval procedure “also requires the consent of the European Parliament.”[3] In the Parliament, a contingent of the Renew party saw an opportunity to scuttle the proposed treaty because of the fears of European farmers, mostly in the state of France, that free trade in agriculture could harm the E.U.’s farmers financially if enough European consumers buy agricultural products from the Mercosur countries rather than domestically.

Admittedly, getting the consent of the Council by even just by qualified-majority voting had been viewed as the challenge. A contingent of the Renew party could presumably be easily outvoted in the Parliament. Nevertheless, the focus on the Council is in line with the inordinate power wielded by the states at the federal level in the European Council and the Council of Ministers. Put another way, being slighted doubtlessly came as no surprise to the representatives in the Parliament. The chamber of the people had typically played second fiddle to the chamber of the states.

Even in the U.S., where the two federal legislative chambers have been viewed as equals since their founding, the U.S. House of Representatives is excluded from the procedure in which treaties proposed by the federal president are sent to the U.S. Senate for advice and to be confirmed (or rejected). If confirmed, the president can either ratify or refuse to do so. Such ratification is required for a treaty to go into effect. The U.S. House of Representatives is excluded.

Resonating with the exclusion of the U.S. House, the E.U. state chairing the Council at the time “used a legal procedure” just after the vote “to enable the provisional implementation of the agreement without a parliamentary vote.”[4] Although the Parliament’s upcoming vote could derail the treaty, the provisional implementation would make it more difficult for representatives to vote against the treaty because it would already be underway. Even if President Von der Leyen would sign the treaty before the Parliament’s vote, the treaty would be rendered invalid, but in setting up a fait accompli, the Commission and the Council were making use of momentum such that voting against the treaty would be more difficult. Furthermore, that the U.S. House is excluded from the legislative consent and ratification of U.S. treaties implicitly implies that maybe the European Parliament, which also represents citizens rather than states, should not be involved in the passage of E.U. treaties with other countries. In federal unions in which governmental sovereignty is divided, regardless of the proportions, the legislative chamber in which the semi-sovereign states are represented can be argued to be more important in international treaties precisely because of the sovereignty still reserved by the states in their political union should have a say, even if by qualified majority voting (in the E.U. Council) or a two-thirds majority (in the U.S. Senate).  Put another way, both of these bars, being higher than a simple majority, reflect the fact that the states in the E.U. and U.S. are semi-sovereign.

In tension with the argument that the E.U. Parliament and the U.S. House should also be included so the respective federal citizens could also have a say, the states might object that a defeat in either of those chambers would nullify what the semi-sovereign state governments have agreed to, and that such sovereignty, together with the limited sovereignty of the respective unions, should not be denied domestically with respect to relations with other countries. The tension here reveals a judgment call, which is of such a magnitude and indeterminacy to be properly determined by popular sovereignty—that which is reserved to the people themselves as an electorate. Moreover, this comparison of the E.U. and U.S. works so well that the equivalency of the two unions, even with the very different proportions of governmental sovereignty delegated by basic law to the federal level, can be easily grasped even by Euroskeptics and anti-federalists.


Wednesday, December 31, 2025

A Big-State Governor Usurps the Role of the European Council's President

The governor of a large state, if speaking for the E.U., risks not only undercutting federal officials who can speak for the E.U., but also subtly orienting federal policy in the interest of that state rather than the entire union. It is important, therefore, that the president of the European Council be tasked with speaking publicly for the Council, rather than usurped.

On December 19, 2025, the president of the E.U. state of France stood at the European Council podium to announce, presumably speaking for the Council, “Either a robust and lasting peace is reached, with the required (security) guarantees, or we will need in the weeks ahead to find ways for Europeans to re-engage in a fulsome dialogue with Russia, and in complete transparency.”[1] Because Macron was not the chair, or president, of the European Council, it is impossible to know whether he is expressing his own opinion or that of the Council; his decision to make the announcement rather than defer to the Council’s president thus weakened the Council. President Putin of Russia had grounds to dismiss Macron’s statement direct talks between Europe will be needed if the American peace proposal falters. Simply put, Macron did not have standing to speak for Europe in terms of talks. Alternatively, he could have stated that his E.U. state would try to have direct talks with Putin, but the downside to that is that Putin could play the E.U. state governments against each other. Hence distinctively E.U. foreign policy would be worthwhile.

At the end of December, 2025, European Commission President Von der Leyen was on firmer ground in insisting that Ukraine’s accession to the European Union as a state was “a key component” of the security guarantees that Ukraine was then seeking as part of a deal with Russia. According to Von der Leyen, who unlike Macron can speak for the E.U., accession represents “a key security guarantee in its own right.”[2] Even though accession requires unanimity in the European Council, I contend that there is value in having a federal official speak for the E.U. on Ukraine becoming a state in the Union. For one thing, it provides a vision which the leaders in the state governments can either accept or reject. For another, Putin can count on Von der Leyen’s statement as coming from the E.U. itself, rather than just from a state government, whether pro or con on Ukraine entering the Union.

In short, the difference between Macron’s opportunism and Von der Leyen’s attempt to bolster Ukraine’s chances in becoming a state is significant. That the state governments hold so much power in the E.U.’s federal system renders making space for E.U. officials especially important, lest one or two big states essentially take over the Union in pursuit of their own geo-political interests. The E.U. has been vulnerable to this because it was, even in 2025, too bottom-heavy.


Thursday, December 18, 2025

Proliferating Blocs: The E.U. and Mercosur

Words matter; they may not break bones, but they can wreak havoc if they are used carelessly or ideologically. Political labels can stick, and, if inaccurate, they can result in people having an incorrect impression of what something or someone is, politically. The war that began in North America in 1861, for example, has typically been labeled as a civil war, but it may be more accurately labeled as the C.S.A.-U.S.A. War because the Confederate States of America did not want to take over the U.S.A.; it was not as if the C.S.A.’s goal was to conquer and government the U.S.A. Having established itself as a functioning political entity even though U.S. President Lincoln refused to acknowledge the political existence of the C.S.A., that union could be said to have existed and been at war with the U.S.A. from 1861-1865. Two unions of states were at war with each other; it was not as if the Union Army was at war with individual seceded states. The C.S.A. had a government apart from the state governments. So “the war between the states” is an inaccurate label because it denies the existence of the two unions. But the common label of a civil war is also problematic because two political factions were not fighting each other for control of the U.S.A. If this criticism seems unusual and even perhaps rather strange, the reason may be because the victor’s labeling of the war has been so overwhelming. My point is that this does not mean that the labeling is accurate just because it has been widely accepted. Similarly, the labeling by E.U. officials (including the E.U.’s ambassador to the U.S.) of the European Union as a bloc is not accurate. 

That the label has been meant to placate anti-federalist Euroskeptics, such as Hungary’s Viktor Orbán, so they don’t further weaken the Union renders the actual, self-inflicted weakening as a self-fulfilling prophecy. Furthermore, that the E.U.’s self-inflicted weakening-by-label has fit the militaristic agenda of Russia’s President Putin and the isolationist agenda of the American President Trump like a glove seems not to have disturbed the E.U.’s political elite. That the E.U. has never been an informal trading “bloc” of sovereign countries like the Mercosur trading bloc in South America is seems not to have bothered the European labelers, including the enabling media.

For example, reporting on a speech by E.U. President Von der Leyen’s to the Parliament, European journalists referred to both the E.U. and the coordination on trade by four countries in South America as “blocs,” as if the two were of the same political type or genre. For instance, Euronews reported that with regard to the E.U. helping Ukraine withstand Putin’s continuing invasion and signing a trade deal with the four countries in America, at “stake is the 27-member bloc’s credibility to shape its foreign policy and trade agenda.”[1] But it is the E.U.’s foreign policy and its trade agenda, not the aggregate of all of the states’ foreign policies and trade agendas, and this difference is backed up by the E.U. having an executive, legislative, and judicial branch of its own, albeit with state participation in the European Council and the Council of Ministers. Blocs do not have governmental branches. The label of bloc does, however, fit “the South American Mercosur bloc” of four countries because that bloc is simply an alignment of trade policies.[2] There was not Mercosur executive, legislature, and supreme court, no Mercosur social policy, and not even a Mercosur federal system wherein governmental sovereignty is split between states and a federal level. The false equivalence of the European Union and Mercosur is a grave insult to Europe, and yet it has repeatedly been self-inflicted by the European political elite itself.

I contend that the E.U. has been a formidable accomplishment, not a perfect union, but far beyond what a bloc is and can muster, and that the potential of that union of states should therefore not be held back by a dominative label intended placate an anti-federalist minority. The costs of continuing to treat the E.U. as equivalent to a trading bloc of countries in South America may seem bearable, but President Von der Leyen’s point that the E.U. was then at a critical inflection-point concerning Europe’s security and independence, global image, and international standing means that the E.U. could no longer afford to label itself as a bloc as if were just another Mercosur group of countries.

For on the very same day as Von der Leyen was delivering a speech to the European Parliament, Russian President Putin was telling a gathering of his military brass, “European swine wanted to feast on the collapse of Russia” and—interestingly in echoing comments only recently made by the American President, Donald Trump—in referring to Europe and the E.U. in particular, “Today it turns out there is no civilisation there, only complete degradation.”[3] Swine degrading European civilization. Ouch! Unfortunately, Russian tanks, bombs, and troops in Ukraine combined with Putin’s rejection of the proposed American compromise because it does not give Russia all the territory is wants in Ukraine render the punch behind the insult more serious than mere words. It is ironic that words spoken outside of the E.U. have made the Europeans’ own use of their word, “bloc,” more costly because what bloc could expect itself to issue its own debt to help Ukraine militarily? What bloc can have a federal foreign policy? What bloc can do more than rely on state militias for a defense? Simply in degrading these expectations, the European political elite continued to shoot itself in its collective foot as Putin continued to apply his political theory that military might makes right in Europe.

The E.U. is neither a regional UN nor a trading bloc of sovereign countries, nor even an international organization. All of these claims are the result of ideological resentment and political expediency. These two vices in the E.U. are like water to a fish. That the member-states ceded some of their governmental sovereignty to be exclusive and even shared competencies of the European Union effectively relegates such false equivalencies to the dust bin, so it is strange that they persisted at least through 2025. In fact, the staying power of the principle of unanimity in place of qualified-majority voting on some major issues may stem from the continuing misunderstanding that the E.U. is merely a bloc.

So, labels do matter, and they can get in the way. This is especially problematic in hard times, for European integration in the E.U. has largely happened only times of crisis. The rhetoric of presidents Trump and Putin alone justifies President Von der Leyen’s statement, “Yesterday’s peace is gone. We have no time to indulge in nostalgia. What matters is how we confront today.”[4] Describing the E.U. as a bloc of member-states does not even qualify as nostalgia because the E.U. has never been a bloc; the self-defeating label sprang out of anti-Americanism (lest the E.U. be held to be equivalent to the U.S. as an empire-scale federal system characterized definitively by dual sovereignty) and the political fear of the domestic, yes, domestic, opposition of anti-federalist Euroskeptics that is ironically strengthened in its version of political reality by the label itself. Self-inflicted weakness in a partisan ideological battle hardly attracts support.

Tuesday, September 23, 2025

A Drone Wall for the E.U.: Russian Aggression Assuages Euroskeptic States

Speaking after his meeting with U.S. President Trump in Alaska during the summer of 2025, Russia’s President Putin said that if no agreement is reached with Ukraine, the force of arms would decide the matter. In other words, might makes right, or at least military incursion is a legitimate way to decide political disputes between countries. I would have hoped that such a primitive mentality would be antiquated in the twentieth century, but, alas, human nature evolves only at a glacial pace undetected within the lifespan of a human being. In September, 2025, the United Nations was under attack from within the General Assembly because of the continuance of the veto held by five countries in the Security Council; the U.S. had just vetoed a resolution for an immediate cession of Israeli destruction in Gaza. As a former deputy secretary of the UN had admitted to me during the fall of 2024, the veto itself renders the UN unreformable; a new international organization would have to be established sans vetoes for efficacy to be possible. Even so, absent a real enforcement mechanism, such as a military force, a resolution even of a vetoless organization would merely be parchment. The impotence of the UN is one reason why NATO, a defensive military transatlantic alliance, has been valuable in the face of military threats by Russia. Yet in September 2025, after Russian drones had flown into four E.U. states, E.U. President Von der Leyen felt the need to take the lead by again stressing her proposal for a drone wall along the E.U.’s eastern border; she was not deferring to any international alliance, much less to the United Nations. I submit that Von der Leyen’s initiative is yet another means by which the E.U. can be distinguished from international “blocs,” alliances, and organizations. Unlike the latter three, the E.U. has exclusive competencies and is thus semi-sovereign (and the same goes for the state governments).


The full essay is at "A Drone Wall for the E.U."


Monday, August 18, 2025

The E.U. on Ukraine: On the Human, All Too Human

On August 17, 2025, Ukraine’s president Volodymyr Zelenskyy met with Ursula von der Leyen, president of the E.U., as a precursor to both of them meeting with Don Trump, president of the U.S. on ending Russia’s invasion of Ukraine. President Von der Leyen had decided to accompany Zelensky to Washington in part to potentially play interference should the U.S. president again publicly berate Zelensky to his face and in part to protect Zelensky should Trump’s position/pressure be too pro-Russia (i.e., pro-Putin). To virtually all Europeans and to many Americans, Trump’s verbal outburst at Zelensky in the Oval Office had been shocking, especially as it seemed to be pre-meditated and orchestrated. Taking emotional advantage of the head of a state being invaded by the empire-scale Russia can assuredly be reckoned as being a bad host, and even low class for the president of the empire-scale United States. International relations do indeed contain a very human element, and in fact leaving it out of an analysis of an international situation is nothing short of negligent.


The full essay is at "The E.U. on Ukraine."

Wednesday, August 13, 2025

Trump Meets Putin on Ukraine: On the Exclusion of the E.U.

Like proud male birds dancing for a female for the chance to reproduce, U.S. President Trump and Ukraine’s Zelensky engaged in public posturing ahead of the negotiations set to take place between Trump and Vlad the Impaler Putin of Russia in Alaska on August 15, 2025. For the public, to take the postures as real positions, set in stone, would be nothing short of depraved naivete. Missing in action in all this posturing was E.U. President Van der Leyen and the E.U.’s foreign minister. Instead, the governors of two, albeit large, E.U. states were busy making demands as if their respective political bases were more powerful than the E.U. as a whole. In short, Van der Leyen missed an opportunity to join the dance of posturing.


The full essay is at "Trump Meets Putin on Ukraine." 

Friday, July 18, 2025

The E.U.’s Borders Held Hostage by the State Veto

With E.U. states like Germany, Austria and Poland becoming increasingly active in patrolling their respective borders at the expense of the Schengen Agreement, it makes sense that the proposed E.U. budget announced in July, 2025 includes more money to protect the E.U.’s borders from illegal crossings. This is important because reinstituting controls on the borders of states contributes toward the visual of the E.U. coming apart geographically. Such a set-back may be worse for the E.U. than the secession of Britain was; in fact, letting that state go arguably strengthened the Union because the British government consistently refused to admit that the E.U. is more than a network of countries that the UK happened to belong to, which was the view of the former governor, David Cameron.

Out of the €74 billion in the proposed E.U. budget of President Von der Leyen “earmarked in the MFF to ‘make Europe safer and more secure,’ €26 billion” would “be dedicated to migration management, including issues related to reception of asylum seekers and other non-border related issues.”[1] In the existing 2021-2027 budget, €25 billion in total went to migration, with €14 billion for border management and €11 billion to asylum reception and integration.[2]

With the federal budgets covering so many years, reforms allowing for easier fast-tracking of proposals to augment a current budget may be advisable in the face of some states effectively shedding the open-state-borders Schengen Agreement. Additionally, the stipulation that any state government can veto a proposed federal budget could be revisited, as states differ on how serious infractions are at their respective borders and thus on the merit of increasing federal spending so the concerned states might pull back and revert to the Schengen Agreement, for claims of emergency by the activated state governments have been specious, and perhaps even outright lies.

That unanimity would be needed to pass the proposed federal budget, which in turn would hopefully strengthen the E.U.’s borders sufficiently that certain state governors could relax and withdraw their forces at their respective state borders ignores the political leverage that some state governors have exploited by using their respective vetoes at the federal level. A certain level of maturity all around is requisite to having the veto-mechanism with the understanding that it is to be used only when a state’s interests would likely be vitally impaired with the passage of a piece of legislation. Without such maturity, all kinds of dysfunctional politics and dogmatic obstacles can be expected in the European Council and the Council of the E.U. as the Commission and the Parliament look on in utter disbelief.

Perhaps it is an overstatement to say that a potential implosion of the E.U. from within could be allowed to run its course because of a refusal to exculpate the principle of unanimity, and thus the state veto, from the involvement of the state governments at the federal level. To exclaim, “The E.U. is NOT a federation!” as a kind of instinctual urge is not a retort; rather, it is the sort of stubborn oblique denial that pushes off reform that could save the Union. That some state governments subject to the Schengen Agreement were already using the emergency clause inappropriately when President Von der Leyen released the Commission’s upcoming budget for the E.U. is witness enough that the stubborn insistence by some governors to retain the state veto power at the federal (or Union) level has prevented the E.U. from being able to adequately enforce and fulfill its own competencies (i.e., enumerated powers). 

Is it not unethical to say, here is a power for you but we’re going to stop you along the way from being able to carry it out sufficiently even though it is your power? Is that not unfair, as well as counter-productive for the Union? Or are the circumscribed, petty interests of the parts greater than the interest of the whole where the benefits of collective action could otherwise be realized?

1. Vincenzo Genovese and Eleonora Vasques, “Lion’s Share of Tripled EU Migration Budget Aimed at Border Management,” Euronews.com, July 18, 2025.
2, Ibid.

Thursday, July 10, 2025

E.U. President Von der Leyen Survives A No-Confidence Vote

Falling short of the two-thirds majority needed to pass on July 10, 2025, the no-confidence vote on President Von der Leyen of the Commission in the E.U.’s parliament mustered only 175 representatives in favor while 360 voted against the motion and 18 abstained. Although commentators discussed whether the president was weakened anyway, a more important matter relates to the politics of the vote as distinct from the Parliament’s institutional interests as they relate to the Commission and the European Council. I contend that the Parliament, which represents E.U. citizens, has a vital interest that is vital to the E.U. itself in maintaining a balance between the collective power of the representatives of the citizenry and the power the state governments at the federal level. Parties making deals with Von der Leyen on policy positions undercut the vote as a means of holding the Commission to maintaining that balance.

For example, the Socialists and Democrats Party “extracted a pledge on the next long term budget in exchange for their support.”[1] The right-wing Patriots for Europe Party and Europe of Sovereign Nations Party both voted in favor of removing Von der Leyen, but certainly not because she left made a deal with the states to sidestep the Parliament on certain matters of policy, for those parties favor more power for the state governments at the federal level. In fact, those parties even deny that there is a federal level! Therefore, we cannot assume that the vote of no-confidence was on the matter of the Commission siding with the state governments to marginalize the Parliament.

The Commission under Von der Leyen had “invoked Article 122 of the Treaty of the Functioning of the European Union (TFEU) to set up SAFE which allows member states to directly approve a Commission proposal ‘if severe difficulties arise in the supply of certain products’ or if a member state is ‘seriously threatened with severe difficulties caused by natural disasters or exceptional occurrences beyond its control.’”[2] Because the Commission and the state governments were able to set up a federal defense-loan program without the approval of the European Parliament, and thus the citizens of the E.U., Roberta Metsola, the head of the Parliament, wrote to Von der Leyen of the “deep concern” in among the representatives that excluding the Parliament meant “putting at risk democratic legitimacy by undermining Parliament’s legislative and scrutiny functions.”[3] The democratic legitimacy of the federal level depends on the involvement of the Parliament, as it is the only institution representing E.U. citizens directly, rather than state governments, which have their own institutional interests even apart from state residents.

It is highly significant that Metsola “stressed that ‘the European Parliament is not questioning the merits of this proposal for a regulation’.”[4] The objection was not one of policy; rather, the concern was based on the democratic viability and overall balance of the E.U. itself as a federal system. By involving policy in the deal-making leading up to the censure vote, certain political parties in the Parliament undercut that institution’s interest in protecting itself against the Commission giving too much power to the state governments at the federal level. The Socialists should not have extracted a political gain from Von der Leyen, and the Green Party members should not have voted on the basis of how much Von der Leyen had prioritized environmental policy. Instead, the parties apprehensive about the Parliament having been circumvented by the state governments and the Commission should have voted to offset the state-rights ideology of the far-right parties in the Parliament. Had this been done, the next Commission would have been very cautious about circumventing the voice of the people by making deals with the governors of the several states. 

Generally speaking, protecting the viability of the federal system itself, including the checks and balances at the federal level, does not get done by prioritizing political deals and even particular policies, as if the pushing for certain policies in the aggregate were tantamount to protecting the system of governance itself.


1. Jeremy Fleming-Jones, et al, “Von der Leyen’s EU Commission Survives Parliament Confidence Vote,” Euronews.com, July 10, 2025.
2. Alice Tidey, “MEPs Vote for Parliament to Sue Commission over €150 bn Defense Loan Programme,” Euronews.com, June 25, 2025.
3. Ibid.
4. Ibid.

Friday, July 4, 2025

Putting a State in Charge of the E.U.

If only Ukraine could become the 51st member-state of the U.S., rather than the 28th state of the E.U., given the veto of Viktor Orban of the E.U. state of Hungary on the E.U. annexing Ukraine. Besides the inherent problems that come with relying so much on the principle of unanimity in the European Council and the Council of the E.U., mislabeling the prime minister of the state that chairs the legislative committees known collectively as the Council of the E.U. as the E.U. president not only marginalizes the federal officials, including President Von der Leyen, who, as the head of the E.U.’s executive branch, can rightfully be considered as the president of the European Union. In contrast, government officials of a state chairing legislative committees can hardly be said to collectively be the “presidency” of the European Union. Behind the promotion of this fallacy is the anti-federalist, or Euroskeptic, political ideology that misconstrues the E.U. as merely a network of intergovernmental relations between the states.

Although the E.U., like the U.S., splits governmental sovereignty between two systems—that of the union and that of the states, the two unions have different ways in which state officials participate at the federal level. The official participation roles are greater in E.U. institutions than in U.S. institutions at the union level. In his book, Federal Government, Kenneth Wheare makes the point that federalism has two systems of government, neither of which is a “level” above the other. He is correct because the sovereignty remaining with state governments, which in both unions includes all residual sovereignty, is not “lower” than the exclusive or shared competencies, or enumerated domains of power, delegated to the federal governmental institutions. The fallacy of “levels” is much easier to grasp by looking that the European Union than the United States because of the extent of official roles in certain E.U. governmental institutions for state officials, whereas in the U.S., state officials lost their direct participation when U.S. senators became elected offices rather than by appointment by the respective state chief executives/heads of state/commanders in chief (i.e., “governors” being those who govern) or legislatures. This difference may be why so much governmental sovereignty will not be transferred from the system of state governments to the union’s governmental institutions in the E.U. by 100 or 200 years in the E.U. as in the U.S. as of the 249th anniversary of the thirteen colonies boldly (as there was considerable risk) declaring themselves to be free and independent countries, then already in a military alliance (i.e., the Continental Congress).

On the day before the 249th anniversary of 13 British colonies in North America declaring themselves to be sovereign countries, Ukrainian President Zelensky attended “the opening ceremony of the Danish EU Presidency in Aarhus.”[1] Depicting or characterizing Denmark as the “EU Presidency” is misleading, for the reference is to officials of that state chairing policy-domain specific committees rather than standing for the E.U. itself. The exaggeration is at the expense of recognition that the Commission’s head, Von der Leyen, a federal rather than a state official, has a greater claim to speak for the European Union. As president of the E.U.'s executive branch, Von der Leyen delivers the annual State of the Union address at the Parliament chamber, just as the president of the U.S. delivers the State of the Union in the U.S. House of Representatives' chamber. It is revealing that just before the Parliament's vote of confidence in Von der Leyen on July 10, 2025, a lawyer specialized in E.U. law predicted that even if the vote is favorable to Von der Leyen, more "and more [E.U.] citizens will ask themselves, is she really the right person to lead the E.U. in such turbulent times."[2] It is not as though the rotating 6-month "presidency" of whatever state government is chairing the committees known collectively as the Council of the E.U. could claim to be at the helm, and thus step in for a weakened Von der Leyen. 

Generally speaking, putting a state in charge of the E.U. would be loaded with intractable problems. In June of the same year, the governor of the E.U. state of France presumed to speak for the European Union rather than just for his state on foreign policy, effectively (and I suspect intentionally) sidelining the E.U.’s president and its foreign minister, an office that is deliberately mislabeled as the “High Representative” to appease Euroskeptics. 

Regarding the involvement of the state governments at the federal level, the President of the European Council, António Costa, had a greater claim than the chair of legislative committees to be referred to as a president, and Macron of France was not the federal official standing for the European Council. That the governor of the E.U. state of Denmark “vowed to support Ukraine’s accession process” to be annexed by the E.U. and to use the “presidency of the E.U. Council to put ‘maximum pressure’ on Hungary to lift its veto on Ukraine” being annexed by the E.U. is less significant than the pressure than the federal officials António Costa and Ursula von der Leyen could apply on Hungary’s governor.[3] In response the emphasis, for example, of the Danish foreign minister chairing the other state foreign ministers in one of the committees in the Council of the E.U., Viktor Orban could more easily relegate Von der Leyen, Kaja Kallas and António Costa and thus deflate pressure from the E.U. itself, which is greater than a committee of state officials chaired by a Danish state official.

In other words, the paralyzing impact of retaining vetoes in the European Council and the Council of the E.U. is exacerbated by falsely portraying a state government as the “Presidency of the E.U.” The Parliament and the Commission even together may be too weak to counter the power of the states in the E.U. governmental system within the federal system; mislabeling a state as the E.U. Presidency only exacerbates the imbalance, even if it is a policy of officials of that state to resist the veto of another state. The E.U. is more than being the simple aggregate of the states, and the European Court of Justice, the European Commission, and the European Parliament are all institutions of the E.U. that manifest the E.U. being more than the sum of its states. Just as balance is important between the system of state governments and the system of the federal government in a federal system, so too balance of power is important between the branches of government, and in this respect the federal government should be distinguished from state government within a federal system because only in the former are some institutions representing states and others represent federal citizens. It is important that the power of the state officials in union institutions not overwhelm the power of federal officials in other union-institutions, lest particular state interests dominate those of the whole. Denmark may have its own economic and political interests with respect to Ukraine, whereas Von der Leyen and Kallas represent the E.U.’s interests rather than those of any state. Overstating the salience of the state governments in E.U. governance at the expense of federal officials.


1. Evelyn Ann-Marie Dom and Jorge Liboreiro, “Ukraine Will Do ‘Anything’ to Advance EU Accession Talks Despite Hungary Veto, Zelenskyy Says,” Euronews.com, July 3, 2025.
2. Sandor Zsiros, "EU Parliament Censure Vote Leaves von der Leyen Weakened, even in Victory," Euronews.com, July 10, 2025, italics added.
3.  Evelyn Ann-Marie Dom and Jorge Liboreiro, “Ukraine Will Do ‘Anything’ to Advance EU Accession Talks Despite Hungary Veto, Zelenskyy Says,” Euronews.com, July 3, 2025.

Sunday, June 15, 2025

The E.U. as a Bystander on the Global Stage: A Self-Inflicted Wound

Why has the E.U. been sidelined amid the military tensions in the Middle East? The answer lies with the E.U.’s federal system, rather than the size of its economy or of its population. The E.U. certainly could have more geopolitical sway abroad were it not for a vulnerability being exploited within its own federal system. The vulnerability stems from a refusal by some state officials to recognize and respect the qualitative and quantitative differences between the federal and the state levels of the E.U. Specifically, when the governor (i.e., chief executive and/or head of state) of a state operates as if a federal-level official, especially that of a federal president, the authority of the actual federal president is undercut, hence weakening that person’s ability to convince the heads of foreign governments to include the E.U. president or foreign minister in multilateral negotiations centered on the Middle East, for example. Even unconsciously, foreign leaders may say to themselves, why should we respect the president of the E.U. if she is so easily upstaged by the leader of an E.U. state who is acting as if he were president of the European Commission?  To speak with one voice, and to be able to speak for the E.U. rather than just one state thereof, an E.U. official must be the speaker. Macron of the E.U. state of France cannot speak for the E.U., but Von der Leyen could, provided her space is respected by the governors of the states. This is not to say that this is the only reason why the E.U. has been sidelined from negotiations on Middle East warfare; rather, my contention is that this reason is typically overlooked due to the Euroskeptic ideological delusion that the E.U. does not have a federal system of government even though since 1993, governmental sovereignty has indeed been split between the states and the Union. Perhaps the underlying question here is whether continuing to clutch at the anti-federalist ideology is worth the E.U. continuing to be weakened unnecessarily from within, and thus sidelined from international negotiations that do not center on Europe. Making such blind-spots transparent is indeed a valuable occupation, even if it can be infuriating to people whose interests and ideology are served best if societies look the other way.

In June, 2025, Claude Moniquet, a European formerly in the field of intelligence, told a journalist that the E.U. had been left “sitting on the sidelines” as Israel pummeled Gaza and commenced a bombing in Iran.[1] “Europeans have been pretty much excluded from all major diplomatic manoeuvres around the war in Gaza or the war in Lebanon,” he added.[2] So even though the president of the E.U.’s executive branch, Ursula Von der Leyen, wrote on 13 June 2025, “Diplomatic efforts are crucial to preventing further escalation,” after having spoke with Israel’s president, Isaac Herzog, words are just words if they are from the sidelines rather than after having been dealt a hand of cards at the power-table.[3] I submit that the irrelevance of Von der Leyen’s words is partly due to Emmanuel Macron of the E.U. state of France having “stolen the thunder” by putting himself up as speaking for the E.U. on Gaza.

For instance, during a three-hour televised interview in early May, 2025, Macron said that Europe should consider sanctioning Israel over the humanitarian situation in Gaza, where “hundreds of thousands” were thought to be “facing starvation.”[4] Even though he was understandably frustrated by the lack of sanctions at the federal level, the president of France had no place to speak for Europe, as he was not an E.U. official at the time. To be sure, the thorny problem of the principle of unanimity in the European Council and the Council of Ministers on foreign-policy matters was a factor in the E.U.’s internal-weakness at the federal level, but Macron’s proper orientation was to contend that France should consider sanctioning Israel, if this had not already been done. Indeed, Macron said publicly on 30 May 2025 that France could harden its position on Israel. “The humanitarian blockade is creating a situation that is untenable on the ground,” he said.[5]

Yet two weeks later, Macron was visiting Greenland to represent Europe’s—not just France’s—objection to U.S. President Trump’s desire to make Greenland a U.S. territory. “The situation in Greenland is clearly a wakeup call for all Europeans,” he said as if he were president of the E.U. rather than the governor of an E.U. state.[6] This manner of situating the French president may seem harsh, but I submit that I have properly stated his role from the vantage point of the E.U. and particularly in terms of its federal system, wherein states are both qualitatively and quantitatively distinct from the federal level officials and governmental branches. Von der Leyen could have spoken for E.U. citizens rather than merely residents of the state of France were she to have visited Greenland, but Macron relegated such an opportunity for the E.U., and thus the collective clout that it potentially could have that a state could not. There is a cost, in other words, in a state official refusing to apply self-control when going into the spotlight is tempting. Were the U.S. president to try to invade Greenland, the E.U. president would have more economic clout than France could have with which to pressure Trump to cease and desist in his imperial designs.


This photo, from Euronews.com, illustrates Macron's usurption and how this impacts how the actual E.U. Commission president (pictured on the right) is viewed from abroad as compromised or weakened as a result..

Admittedly, involving state officials in foreign policy is arguably one way in which the E.U.’s federal system is a better case of federalism than the top-heavy American counterpart, but such involvement requires also giving E.U. officials, especially its (executive branch) president and foreign minister, enough authority with which to block state leaders from stealing the show on the societal stage. Although the U.S. had taken the doctrine of federal preemption of state action too far, some preemption would be justified in the E.U., especially as the governors do have a formal role even at the federal level in the European Council and through their ministers in the Council of Ministers on foreign policy. The proclivity to go beyond those federal institutions conflicts with the roles of the E.U. president and foreign minister in being able to lead the E.U. on foreign policy. A similar case of state overreach occurred when the prime minister of Italy sought to manipulate representatives in the European Parliament, which represents E.U. citizens rather than states.  Likewise, a governor of one of the republics in the U.S. can justifiably pressure a U.S. senator representing that governor’s state at the federal level, but the House representatives even in districts located in that state serve the U.S. citizens in those districts rather than the state government.

In short, political overreaching should be guarded against for a federal system to function optimally, such that benefits internationally from collective action at the federal level can be realized while the cultural and ideological interstate differences can be accommodated by there being policy domains retained by the state governments. Stealing the limelight of someone else is not conducive to a federal system being able to work both internally and as a political unit to the outside world. Put bluntly, if France’s Macron wants so to be president of the E.U., let him go through the process of candidacy at the end of Von der Leyen’s second term rather than usurp her role before then.


1. Jeremy Fleming-Jones, “Europe Left on Diplomatic ‘Sidelines’ in Israel Iran Conflict,” Euronews.com, June 15, 2025.
2. Ibid.
3. Ibid.
4. Gavin Blackburn, “Macron on ‘Crusade against Jewish State,’ Israel Says Following Criticism of Gaza War,” Euronews.com, 30 May 2025.
5. Reuters, “France May Toughen Stance on Israel If It Continues Blocking Gaza Aid, Macron Says,” Reuters.com, May 30, 2025.
6. Emma De Ruiter, “Macron Reaffirms Support for Greenland during Visit Ahead of G7 Summit,” Euronews.com, 15 June, 2025.

Saturday, May 3, 2025

On the 2025 Political Convention of the European People’s Party

Competition within a pollical party and recognition that a political party is indeed a political party are essential or at least advantageous to any political party in a democratic system. Moreover, a republic, even if it contains smaller republics but is not just them in aggregate, deserves to be recognized as such rather than implicitly relegated by erroneous nomenclature that is designed to appease skeptics so they won’t rise up to resist the federal republic itself. “Let the chips fall where they may” is, I believe, an expression from gambling. Another expression comes from playing cards: Call a spade a spade. These two expressions evince truth and power, whereas hiding behind false notions is sheer weakness. Much of my writing on the European Union is oriented to strengthening it, as well as to gleam lessons for both the E.U. and U.S. by comparing and contrasting them as federal empire-scale unions of states.

Rubber-stamping closed-room decisions is hardly uncommon at conventions of political parties. The E.U.’s European People’s Party is no exception. At the annual convention in 2025, the party’s leadership appeared “quite monarchic” in spite of the fact that the E.U. was “the world’s second largest democracy,” and that President Von der Leyen had been touting the value being placed on democracy.[1] At the convention, Manfred Weber was re-elected by 502 of 563 votes “while his loyal ally Dolors Montserrat was elected unopposed to the position of secretary general with 91% of the votes cast.”[2] The lack of intra-party competition could be expected to have an impact politically on the E.U. itelf, as the “ascendant” EPP included E.U. Commission President Von der Leyen, 13 commissioners, and 188 representatives in the Parliament.[3]

With the E.U. being a few years over 30 years old, the EPP in the E.U. could be likened to the Congress Party in India during the twentieth century. To be sure, the latter party eventually lost its dominance, and the EPP could be expected to lose its early foothold too. Beforehand, however, a democracy deficit can exist not only when one party dominates at the federal level of an empire-scale polity of polities, but also when such a party is monocratic at the party level.

In other words, a multiplier effect can be in the mix when dominance is salient within a party that in turn is dominate in a government, and an executive branch, a legislative chamber elected by citizens, and a supreme court do indeed constitute a government even if denial has a firm foothold in the public square. In fact, for the media to mislabel a political party’s convention as a congress, which is actually an international meeting of sovereign countries, and a union such as the E.U. as a bloc undermines the credibility of a party and union. Both a democracy-deficit and enervating ideological (i.e., Euroskeptic) misnomers imperil a federal system, especially if the states hold most (but not all!) of the governmental sovereignty. 

For the Commission to be able to enforce even its exclusive competencies (i.e., enumerated powers), it is important that that executive branch be representative rather than oligarchic and known to be something more than of a bloc, which is a temporary grouping for one purpose. The E.U. was not intended to be temporary or of just one pillar. Indeed, the third pillar belies any claim that the E.U. is merely an economic international organization. International organizations such as NATO and the UN have no governmental sovereignty of their own, and do not have legislative chambers whose representatives are directly elected by citizens. International organizations do not even have citizens! A little intellectual honesty can go a long way.


1. Jeremy Fleming-Jones, “The EU’s Biggest Political Party Met in Valencia—What We Learned,” Euronews.com, 30 April 2025.
2. Ibid.
3. Ibid.

Friday, September 20, 2024

The €35 Billion E.U. Loan to Ukraine: One E.U. State as a Destabilizer

On September 20, 2024, it was announced that the E.U. would “raise a €35 billion loan to support the Ukrainian economy and military.”[1] At a press conference next to Ukraine’s president Zelenskyy, the E.U.’s president said, “Russia keeps targeting your civilian energy infrastructure in a blatant and vicious way to try to plunge your country in the dark.”[2] So the loan stood to impact the Ukrainian people directly and significantly. It would be a shame if the principle of unanimity in the European Council would stand in the way of the Ukrainian people being warm during the upcoming winter. This is a very tangible way for people to grasp just how real the costs are of state governments having vetoes over a significant number of E.U. competencies (i.e., enumerated powers). “The European Union is here to help you in this challenge to keep the lights on, to keep your people warm as winter is just around the corner, and to keep your economy going as you fight for survival,” Von der Leyen said at the news conference.[3] Hungary’s Viktor Orbán stood in the way, however, to securing the collateral for a long enough period to render the loan (an any from the U.S. based on the collateral) secure.

The loan uses Russia’s immobilized assets as collateral, and E.U. sanctions on the assets had to be renewed every six months by unanimity. The concern was that Hungary would use its veto because it is the “most Russia-friendly” E.U. state.[4] Before the announcement, the Commission had proposed alternative asset renewal periods ranging from 36 months to five years. Tellingly, one state government announced that it would wait until after the upcoming U.S. election before considering the options. This made it difficult for the E.U. to give the U.S. legal assurance that the Russian assets in the E.U. would remain frozen—that the collateral would remain under the control of the E.U. rather than go back to Russia. Because the collateral could not be assured going forward, the U.S. Congress would have to approve funding for any American loan to Ukraine secured by the collateral in Europe. Of course, the E.U.’s own loan depended on the collateral too, so the possibility that one state government would veto an extension of the assets being frozen meant that the E.U. risked being “on the hook” should Ukraine fail to pay back the E.U.’s loan.

Incredibly, Andrew Moravcsik of Princeton University spoke at Harvard on the same day as the announcement of the E.U. loan that even though right-wing state governments in the E.U. have a loud bark, their bite is muted, meaning that in terms of government policy the impact is nil. He argued that they had to appease moderates to get enough support to have any impact on actual policy. Yet Hungary’s refusal to consider any of the longer periods to keep the Russian assets frozen in the E.U. meant that the E.U. and U.S. had to assume more risk in lending to Ukraine. One need only point to the refusal of Orbán’s government to pay the €200 million fine levied by the European Court of Justice, the E.U.’s supreme court, because the Hungarian government had violated E.U. law, and to the violation itself, plus Hungary’s threat to bus migrants to the E.U. capital, to know that the ideology of Orbán’s party was indeed having an impact in policy. This had hardly escaped the notice of the Commission and the ECJ. The implication is that the E.U. could ill-afford the principle of unanimity for any E.U. competency; Euro-skeptic ideology could indeed impact policy at the federal level—and, yes, the E.U. had a federal system even in 2024 of dual-sovereignty (hence the union was not an international organization or a “bloc”). Too much sovereignty remained with the state governments in the form of the veto that they could wield in the Council, and the harm can be seen in the possibility that Ukrainians would not have enough heat during the upcoming winter. Is collective action really so bad? Should one state be able to thwart it on ideological grounds?

I submit that the E.U.’s effort is laudatory but that the E.U. itself contains its own obstacle in continuing with the principle of unanimity in the Council that represents the states. Just imagine the impact on U.S. policies if one state could defeat a measure in the U.S. Senate. Even though the E.U. had fewer states at the time, there were too many for unanimity to be at all realistic on most matters. Empire-scale unions inevitably have states that differ from each other culturally and ideologically. Majority voting and qualified majority voting accommodate this fact, whereas the principle of unanimity does not.

1. Jorge Liboreiro, “EU to Raise €35 Billion Loan for Ukraine Using Russia’s Frozen Assets, Von der Leyen Says,” Euronews.com, September 20, 2024.
2. Ibid.
3. Ibid.
4. Ibid.

Friday, September 13, 2024

Nature Credits in the E.U.

One of benefits of the market mechanism, by which, for example, economic goods are bought and sold, is that self-interest is relied on; people don’t have to be told to buy or sell a product because it can be in their self-interest to do so if the price is right. As an alternative to regulatory standards, a government can create units of pollution-allowance that businesses can purchase so to be lawfully able to pollute in so far as a purchased unit allows. In the E.U.’s emissions trading system, “operators of power plants and factories have to buy tradeable allowances to cover every tonne of carbon dioxide they emit.”[1] Business could buy and sell allowances so as to cover the amount of pollution that is anticipated. In this way, the market mechanism efficiently allocates pollution in line both with the interests of the companies and the public interest—the latter being made concrete in the decision on how much pollution per allowance and how many allowance units to create. Crucially, the company private interests are put within the purview of the public interest; the tail is not directing the dog. In political economies in which political-campaign contributions by businesses are high, especially if unlimited, the tail can indeed wag the dog, such that the public interest is determined by private interests. This is one reason why the Citizens United (2010) U.S. Supreme Court case is so significant. It allows corporations and labor unions to spend unlimited amounts of money on political campaigns and directly on advertisements—both being beneficial to elected officials in positions to curry favor through legislation and regulations favorable to business (or labor). The informal exchanges of political donations and legislation or regulation comprise a market of sorts. So, the market mechanism, which is created or at least regulated by government, can serve for good or ill, from the standpoint of the public interest.  Using the mechanism, such as the E.U. president proposed in 2024, on behalf of ecosystems, is for good rather than ill, and thus using, in effect, the self-interest of farmers could be better than relying on regulatory requirements that farmers expend some money and effort to beef up their local ecosystems.

At a conference on September 13, 2024, a Friday, E.U. President Ursula von der Leyen said, “We need new financial tools to compensate farmers for the extra costs of sustainability and compensate them for taking care of the soil, the land, the water, and the air.”[2] The assumption is that the farmers would not otherwise do so because expending the energy and paying the costs for the externalities would not add to their profits from farming in the short or medium term. The time-value of money too reflects the penchant in human nature for immediate over delayed gratification. To extend the farmers’ “event-horizon” and broaden out their concern to include their vicinity would be the purposes of “the market-based system of ‘nature credits’,” which Von der Leyen hinted “could also be applied beyond the agricultural sector.”[3] This is part of the beauty of the market mechanism: it can be applying to various things, serving various purposes, rather than only pertaining to economic products and services.

Via “nature credits,” a water company could have the incentive as per self-interest to help to take care of a spring that that company depends on, and a fruit company would be more likely to invest in the “essential work of pollinators.”[4] That the language of long-term investment applies raises the question of why farmers in general do not do what manufacturing businesses do as a regular part of business. It would seem that making sure that a principal water source is not lost or that bees stay in the area of the fruit trees would be in the self-interest of the respective companies. Why would compensation by the government be needed to run a sustainable business?  Is the managerial perspective really so delimited that the viability of the business is not included?

Unfortunately, even by 2024, climate change was perceived by many business practitioners still as a gradual and outside process not germane to business. Johan Rockstrom of the Potsdam Institute for Climate Impact Research, said at the same conference, “I can tell you, science is clear today that the ultimate determinant, what regulates the stability of the planet, its ability to stay in a desired equilibrium state is nature.”[5] According to a journalist, Rockstrom was “suggesting that action of biodiversity and climate made sense even if purely pragmatic.”[6] If farmers didn’t yet see it as such, “nature credits” would help render biodiversity pragmatic from an agribusiness standpoint—essentially interiorizing some externalities.

To be sure, even if a private interest broadens out to include some hitherto externalities, that interest is still not the same as the interest of the whole: the public interest. It would still be important to protect the public interest from being captured by a private interest; a large company or an industry that would implicitly presume to be in charge of its own regulation by dictating legislation and regulation to sycophantic government officials should be withstood by them. Even so, expanding the practical purview of private interests is in the interest of the whole, and the market mechanism can be used to make this so.

1. Robert Hodgson, “Von der Leyen Moots ‘Nature Credits’ Market to Avert Ecosystem Collapse,” Euronews.com, September 13, 2024.
2. Ibid.
3. Ibid.
4. Ibid.
5. Ibid.
6. Ibid.

Tuesday, August 20, 2024

Public Policy on Housing in the E.U.: On the Impact on Federalism

With rents and the price of houses being historically high in 2024 in the E.U., it is no surprise that housing was a salient issue in the E.U. election campaigns that summer. Legislative action on the state level had been insufficient. Hence, President von der Leyen told the parliament, “I want this Commission to support people where it matters most, and if it matters to Europeans, it matters to Europe.”[1] The Union complementing legislative action by state governments on such an important issue is admittedly a step in the direction of solving an urgent problem, but the impact on the federal system in the future should not be ignored. As important as a pressing issue of the day is, someone should be keeping an eye on the shop itself. The gradual political consolidation of the U.S. federal system over more than two centuries at the expense of federalism is an example of what can happen when policy-makers are too oriented in putting out policy “brush fires” without bothering to ask how the federal system itself could be impacted.

To be sure, homelessness and high house prices and rents had become big problems by 2024. In 2023, an estimated 890,000 people were homeless in the E.U., while over 650,000 people were homeless in the U.S., out of total populations of almost 447 million and 336 million, respectively. Even though less than 1 million out of hundreds of millions looks minor, the trauma of being without a stable shelter, as well as the fear of losing one’s shelter due to a dire change in economic condition, argues in favor of housing being recognized as a human right that governments are obliged to supply where reliance on a market and personal income falls short. Put another way, the sort of existential angst that is triggered by homelessness and, to a much lesser though significant (yet subtle) degree, losing a job (or even knowing that it is possible) belongs in the state of nature rather than in civil society. Where the supply of available units of affordable (i.e., low-income, and no-income) housing is less than the number of homeless in a given geographical area, this argument suggests that government should see to it that the gap is filled. This is, of course, a normative argument, one that has been much more prevalient in the E.U. than in the U.S.

Generally speaking, government targets for new units tend to fall short of those that would be necessary to expunge actualized existential angst. In the E.U. state of Ireland, a local-government official bragged to a journalist in 2024 that the city government would reach its target, and the journalist pointed out that it is insufficient to eliminate homelessness in the city. Both in terms of being shy in having more affordable-housing units built and in standing up to hedge funds that are driving up house prices by buying up some as investment (and even by keeping some units vacant to increase the shortage), local governments have fallen short.

Besides spending money on the construction of new units, government can restrict the use of residential real estate for investment and even as small hotels (e.g. Airbnb). At least as long as homelessness exists, so this argument goes, shelter’s use for speculation is inconsistent with housing as a human right. To be sure, the moneyed interests in a society can be hard for democratically-elected representatives to resist even when a significant number of people are paralyzed by existential angst.  

Not going nearly so far but signaling a shift in societal and governmental priorities, President von der Leyen of the European Commission set up her second portfolio, or term of office, in the summer of 2024 by stressing “the urgency of tackling the housing crisis, proposing the first-ever European affordable housing plan and a commissioner responsible for the policy area, as the Socialists had demanded as a condition for backing her second term.”[2] At the time, “a significant investment gap in social and affordable housing” existed in the Union.[3] In addition to there being the homeless, people were “struggling to find affordable homes,” von der Leyen said at the mid-July plenary in Strasbourg.[4] “Between 2010 and the end of 2023, average rents in the E.U. increased by almost 23% and house prices by nearly 48%, leading to protests in cities.”[5] The general economic interest was being negatively impaired by the housing- (and food-) led cost of living increases.

The E.U. being a federal system of dual sovereignty, like the U.S., von der Leyen had to contend with the “limited competency” of the E.U. in housing; by this I do not mean incompetence. Rather, the federal and state levels could both legislate in housing. Because the states could “only use public funds to target the most vulnerable groups,” space was open for the federal government to legislate to bring the cost of housing down. In other words, the states were oriented to the homeless problem, which arguably represents a greater, or more severe harm in society, so the Union’s activity on the wider problem of high rental and house markets would not usurp the residual sovereignty of the state governments.

This is not to trivialize the problem of high housing markets, whether in California or Ireland. “In terms of state aid [at the federal level], we would like to see the recognition of social and affordable housing for all—beyond disadvantaged groups or social groups with fewer opportunities—as a service of general economic interest,” said Christophe Rouillon, president of the PES group in the European Committee of the Regions (CoR).[6] The scope not only of the problem, but also of the legislative means, or power, is such that this “limited competency” of the Union could have a significant impact on shifting more power from the states to the Union. “The E.U. can influence housing through financial regulation, competition law, energy efficiency, regulatory and planning standards, cohesion policy, climate action, urban/rural and social policies,” Rouillon stated.

The impact of federalism should not be lost on policy makers both at the federal and state level even though the primary focus is on the policy issues (i.e., homelessness and high real estate markets). In reaching a fever pitch of societal displeasure, these issues may give us a glimpse into how modern federal systems, which are characterized by split (or dual) governmental sovereignty, tend to consolidate power at the federal level at the expense of the state governments over time. Europeans would be wise to think about whether the E.U., just over 30 years old in 2024, would be as consolidated at the U.S. in 2024 after more than two-hundred more years. Both unions being of vast territorial expanse in 2024, such that states in each union can differ from one another in the same union so much that “one size does not fit all” in public policies, political consolidation comes with significant drawbacks. Additionally, the “check and balance” feature of federalism is rendered inoperative when a federal government has so much power that the state governments cannot counter-balance it. The question of whether the E.U. might end up as consolidated politically as the U.S. is thus not at all trivial.

1. Paula Soler, “Von der Leyen Promised an EU Commissioner to Tackle the Housing Crisis,” Euronews, August 13, 2024.
2. Ibid.
3. Ibid. For those readers who feel the need to substitute “bloc” for “Union,” there is help.
4. Ibid.
5. Ibid.
6. Ibid.

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