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.

Saturday, September 7, 2024

Hungary and Texas: Busing Immigrants

Two years after the government of Texas in the U.S. began transferring migrants to other states and to Washington D.C., the government of Hungary announced that it too would bus migrants, but rather than transporting them to other states, the destination would be Brussels exclusively. Although the respective political strategies differ, the two policies both represent the same pressure point in federal systems. The cost of united action at the federal level on public policy is that the states are not as free as otherwise to manifest their respective ideological and cultural views in public policy at the state level. That federal policy or law is often a compromise between the preferences of the states means that political pressure exists not only between states, but between a given state and federal law. This is inherent to federalism because it provides benefits from united action and some ability of states to enact legislation reflecting their respective distinct dominant ideology. Enabling both is one of federalism’s best features, yet it comes with a cost in terms of political tension that is endemic rather than merely episodic. Simply put, no system of government is without drawbacks or downsides. The trick is perhaps in how to manage them so they don’t get so out of control that the federal system itself collapses. In 2024, Viktor Orbán, governor of the E.U. state of Hungary, was testing the limits much more than was Greg Abbott, governor of the U.S. state of Texas, even as Orbán was using Abbott’s playbook.

In June, 2024, the E.U.’s supreme court, the European Court of Justice, handed down a ruling ordering the E.U. state of Hungary to pay a fine of €200 million for breaking federal laws on asylum plus an additional €1 million per day until the state government passes a law conforming with the federal law.[1] Hungary’s requirement that people seeking asylum must first apply for and be granted travel permits violated the federal law requiring that all of the states have the same procedures for granting asylum. Setting up a confrontation with the high court, essentially challenging its very legitimacy, the Hungarian government “missed the first September deadline for paying the €200 million fine.[2] In fact, the state “also demanded compensation for the billions it says it has spent on border protection, including constructing fences protected by razor wire on its southern borders with Serbia and Croatia.”[3] In other word, the state government wanted to be reimbursed by the E.U. for costs incurred by the state to protect the E.U. border that runs along an edge of the state. Thus situated, Hungary is like Texas. Ideologically too, Hungary’s governor was quite similar to the governor of Texas at the time, Greg Abbott.

In fact, Vicktor Orbán likely got his idea to send illegal immigrants from his state to Brussels from Greg Abbott, who had spent more than $148 as of February 21, 2024 in putting more than 102,000 illegal immigrants on buses bound for other states and Washington, D.C.[4] Texas also spent $10 billion on law enforcement and constructing physical barriers at the U.S. border that runs along the edge of Texas, though reimbursement by the U.S. was not demanded.[5] At a news conference at the state capital Budapest, Hungary’s State Secretary Bence Rétvári accused the E.U. in 2024 of wanting to force the state to allow illegal immigrants into the state, and announced that the state government would “offer these illegal migrants, voluntarily, free of charge, one-way travel to Brussels.”[6] He made the announcement in front of a row of passenger buses that would be bound for the E.U. “headquarters in Belgium.”[7] He said, “If Brussels wants illegal migrants, Brussels can have them.”[8] Interestingly, Texas could have had the same strategy: instead of sending buses to lax states as well as to Washington, D.C., all of the buses could have dropped off their passengers at the Washington Mall—at the U.S. headquarters—as Abbott had been so critical of U.S. immigration policy.

Both cases—that of Hungary and Texas—demonstrate what can happen when state governments in a union differ on a matter of public policy not only with each other, but also from a federal policy or law. The degree of unity that is necessary for a union to continue to exist and function viably comes at the expense of ideological differences between states. This tension is endemic to federalism, as that system of government allows for cultural or ideological diversity between states and benefits to the whole that the combined forces of an empire-scale union can provide. In the E.U., the Hungarian government was quite critical in 2024 of Germany’s more lenient practice in allowing migrants to enter the state, yet at the same time the united force of the E.U. was able to give Europeans more power in resisting Russia’s invasion of Ukraine.  In the U.S., the Texan government was critical of California’s “sanctuary cities” in which illegal aliens were not arrested by state police, yet at the same time the united force of the U.S. was also able to stand up to Russia’s president’s militaristic foray into Ukraine. Both cases demonstrate federal systems that are “living and breathing,” allowing for differences between states, such as on abortion in the U.S. and social policy in the E.U., while enabling both unions to have a significant impact internationally.


1. Angela Skujins, “’We Never Let Them In’: Hungary’s PM Viktor Orbán Demands New Laws Tackling Migration,” Euronews.com, September 6, 2024.
2. Ibid.
3. Ibid.
4. Sergio Martinez-Beltran, “Texas Has Spent More than $148 Million Busing Migrants to Other Parts of the Country,” The Texas Tribune, February 21, 2024.
5. Ibid.
6. Angela Skujins, “’We Never Let Them In’: Hungary’s PM Viktor Orbán Demands New Laws Tackling Migration,” Euronews.com, September 6, 2024.
7. Ibid.
8. Ibid.

Saturday, August 24, 2024

Resolved: Flanders and Wallonia as E.U. States

On August 22, 2024, Bart De Wever of the New Flemish Alliance group in Belgium resigned as his efforts to form a government had stalled. His group had won the most votes in the E.U. state’s most recent election back in June, at which time King Philippe appointed De Wever to find consensus among five groups on policies such as taxation on capital gains. Belgium’s longest period without an elected government is an incredible 592 days, which was set after the previous record of 541 days that had been set after the 2010 elections.[1] With two culturally-different regions, Belgium has been difficult to govern. Being a state in a union could conceivably help Belgium in this regard.

A day after De Wever resigned, a media report insisted that “Belgium must form a government to file a federal budget to the European Commission by September 20, 2024.”[2] Yet it seems easy enough to miss such a deadline. Rather than look for administrative means by which being in the Union could pressure the state to get its act together on governing, the possible impact may be more basic. Put another way, thinking bureaucratically is not sufficiently “outside of the box.”

Theoretically, there being some governmental sovereignty at the federal (i.e., E.U.) level takes the pressure off a state to form a government because not all governmental responsibilities are handled any longer at the state level. In other words, there is less riding on which groups govern the member state. But the amount of sovereignty that had been delegated by the states to the Union by 2024 was not sufficient to relieve enough pressure, given that the 592 and 541 days had occurred when Belgium was in the European Union. Furthermore, the heady game of politics can make virtually anything seem important to political antagonists, even if major decisions of public policy are taken elsewhere.

So, like the efficacy of any administrative means by which the E.U. might attempt to chide a stalled state into forming a government, taking the heat off is also unlikely to succeed. Being in a union presents Belgium instead with the non-ideological alternative of splitting into two E.U. states without them being foreign. In other words, being in a political union effectively relativizes the fallout from splitting up because both Flanders and Wallonia would still be in the Union; neither, after all, would be the smallest state in the Union. The intractability in governing should be a wake-up call, or indication, that maybe the two regions would be better off as separate states; governing together just hasn’t worked out very well.

Of course, opposing such a change, which seems drastic, is the ideology of nationalism and the related difficulty, especially in Europe, of letting go of some history. The same ideology has manifested in the E.U.’s Euroskeptic parties in the European Parliament to the potential detriment of the Union itself. Even conflating the union with a “bloc” is harmful in that Belgians would not realize the extent to which Flanders and Wallonia would still together by virtue of being states in the same union, which is substantially different than a trading bloc or military alliance. Citizens of Flanders and Wallonia would all be E.U. citizens, for example. They could live and work in the other state, and they wouldn’t have to go through customs in traveling back to visit old friends. Additionally, the currency wouldn’t change. They would all still be represented in the European Parliament.

Ironically, Belgians might even have a greater Flemish and Walloon cultural identity due to greater cohesion at the state level. Identifying more at the federal level—leveraging this—could thus make enhanced regional identity stronger rather than weaker. Il faut séparer être ensemble. It is a pity that thinking outside the box is perceived generally as radical, and thus as easily dismissable, and that making substantial rather than merely incremental change is often an up-hill battle, given the intractability of political will and the related momentum of stasis in the status quo, whether it is working or not.


1. Angela Skujins, “Belgian Government Talks at a Standstill after Resignation of Key Negotiator,” Euronews, August 23, 2024.
2. 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.

Monday, August 5, 2024

The European Union Is Not a Trading Bloc

The European Union can be distinguished fundamentally from the previous European Economic Community in several ways, just as the Articles of Confederation can be distinguished on a fundamental level politically from the U.S. Constitution. Both Europe and America have made a qualitative jump, rather than merely as a matter of degree or further extent. In both cases, politically speaking, governmental sovereignty has been split between a union and state governments. Furthermore, in both cases, the domains of power being handled at the federal level have increased. In the case of the U.S., the coverage has expanded beyond Washington’s Continental Army. In the case of the E.U. even by 2024, the union’s coverage had come to extend well beyond a common market and trade policy to include non-economic domains of power, or competencies, too. In this regard, the E.U.'s federal level resembles a government.

After her reelection as President of the European Commission, the E.U.’s executive branch, in 2024, Ursula von der Leyen had some jobs to fill. Among them, each state was to designate one person to be a commissioner. It was up to the president to assign each person to an area, or domain, of power, which were hardly all economic in nature.

Among the dream jobs, besides Competition and Economic & Financial Affairs is Foreign and Security Policy, which is a traditional domain of a government. To be sure, the Competition Commissioner has considerable power “to block mergers, fine big companies, and ban state subsidies that distort markets—and, unlike most other E.U. commissioners, [the Competition Commissioner] doesn’t need to sign off decisions with governments or [the European Parliament].”[1] This represents a transfer of governmental sovereignty has taken effect from the state governments to that of the European Union (which also means that the E.U. had indeed a government of its own distinct from those of the states). Even though I suspect this is most true for economic portfolios, because a majority of E.U. competencies are subject to qualified majority voting instead of the principle of unanimity, the E.U.’s governmental sovereignty extends beyond the economic domain.

Among the rising stars of portfolios are two: Defense and Enlargement, rather than only Industry and Digital. That defense in particular was projected to be enhanced in Von der Leyen’s second administration supports the point that the E.U. was indeed thought of as a government, even if behind a veil of Euroskeptic (i.e., states’ rights) denial.

Among the golden oldie portfolios are climate, migration and justice, rather than just energy and trade. To be sure, on immigration there was still “a lack of real E.U. power.”[2] But “with concerns about media freedom and judicial independence” on the state level “on the rise,” the justice portfolio could “set a bold new direction in protecting the rule of law” within the union—power that can hardly be reduced to economics. Indeed, in enforcing justice within states rather than only at the federal level, the Justice Commissioner’s position itself supports the point that governmental sovereignty was in fact dual in the E.U. even in 2024.

That there were Commissioners of Agriculture and Budget also points to the E.U. being a government, as governments typically have their own budgets and have agriculture policies. Indeed, having territory, which the E.U. does indeed have, is a hallmark of being a government. The portfolios of Cohesion, Neighborhood, Home Affairs, Environment, Health, and Social Rights all contradict the supposition that the E.U. was economic in nature even as late as 2024. Social rights especially do not reduce to economics, but, rather, are fundamentally political in nature. Whether or not natural rights exist as John Locke argued, governments can institute and protect (as well as take away) social rights. The additional portfolios of Demography, Foresight, the Mediterranean, and “the E.U. way of life” all also go beyond the economic domain. So many portfolios at a high level in the Commission are not expressly or even mostly economic that it cannot be said that the E.U. was an economic organization at least by 2024 when Von der Leyen’s second term began with an emphasis on defense at the federal level, given Russia’s invasion of Ukraine.

Among the plethora of implications, the European Union cannot be characterized like the EEC was, as a single-issue organization; rather, in part because the federal competencies had grown broadly by 2024, we can speak of there being a federal government. There are of course other reasons why this is so in contradistinction to both the EEC and the American Articles of Confederation, both of which were solely international rather than a blend of national and international as evinced by the E.U. and U.S. Whereas in the U.S., that the U.S. Senate is founded on international principles has been commonly forgotten, most Europeans conveniently look over the fact that the European Parliament is founded on national rather than international principles.

Ideology is a great distorter, especially in politics and religion. To refer to the E.U. as an economic bloc is the epitome of intransigence in the face of political reality. That such a psychosis has been perpetuated by journalists in the service of ideologues, giving the brain sickness (recall Nietzsche’s use of the expression!) a patina of official legitimacy, is truly astonishing given the breadth of portfolios in the Commission alone.


1. Gerardo Fortuna and Jack Schickler, “Demogra-what? A Definitive Guide to European Commission Portfolios,” Euronews, August 8, 2024.
2. Ibid.

Sunday, August 4, 2024

Adding Anti-Trust to Monetary Policy: The Case of Groceries

Monetary inflation is a complex phenomenon. Not only can its causes be several; it can make it more difficult to distinguish immediate and medium-term economic conditions from more long term, or structural changes impacting our species economically.  Of the former, the relationship between inflation and whether the markets are competitive or oligarchic (or even monopolies) can be better understood, and this in term can put us in a better position to assess the impact of longer-term changes, such as those stemming from the huge increase in the population of human beings since before the industrial age. The price of food (i.e., groceries) is a case in point. Specifically, the impact from presumably temporary shocks during the Covid pandemic should be distinguished from the impact of oligopolistic markets in keeping prices high, and of the increase in human mouths more generally (and longer term) representing increased demand for foodstuff in on a relatively fixed planet.

In addition to a spike in the prices of raw materials, or, moreover, factors of production, and a growth in the money supply above the growth in GNP, the gradual consolidation of an industry from market competition to oligopoly and even a monopoly can increase inflation. The consolidation of the U.S. meat-producer market, for example, could be expected to result in higher meat prices at grocery stores. Similarly, barriers to entry facing discount grocery stores could result in food prices staying high even after a temporary increase in factor costs. In short, government action to keep markets competitive or return them to the discipline of competition should go side by side with monetary policy, lest it be assumed that inflation is primarily a result of the growth in the monetary supply. Otherwise, keeping interest rates higher than would otherwise be the case could unnecessarily put a damper on job growth.

In June, 2024, the U.S. official unemployment rate increased to 4.1 percent; the next month, that figure was even high, standing at 4.3 percent. This triggered the “Sahm rule,” according to which “a recession is imminent or underway if the three-month moving average of the unemployment rate rises by 0.5 percentage points or more relative to its prior 12 month low.”[1] The U.S. economy added 114,000, rather than the expected 175,000 jobs in July, and some people were nervous that a recession might be on the way.[2]

Accordingly, U.S. Sen. Elizabeth Warren wrote, “Fed Chair Powell made a serious mistake not cutting interest rates. . . . He’s been warned over and over again that waiting too long risks driving the economy into a ditch. The jobs data is flashing red.”[3] The Fed kept the interest rate in place in order to fight inflation even though 4.3 percent is above the acceptable range for unemployment according to the Fed. In fact, Austan Goolsbee, President of the Chicago Federal Reserve, said at the time that 4.3 percent was something the Fed “has to respond to” by cutting interest rates.[4] Besides, he added, the “trends show inflation coming down across the board, multiple months in a row” as the labor market was cooling.[5]

Anyone shopping in a grocery store, however, would beg to differ, however, as the rise in food prices during the Coronavirus pandemic had not come down after the shocks, which included shipping as well as hoarding, had ended following the pandemic. Meat prices in particular had stayed very high even though such levels would be expected to attract new suppliers (or more supply) in a competitive market. But the meat-producer industry had been consolidating so a few large companies could essentially dictate prices to grocery stores, a related industry that had itself become oligopolistic. That the discount chain, Aldi, was not in the San Francisco region of California, for example, even in 2024 while Safeway and Whole Foods kept prices high suggests that the competitive mechanism, which protects consumers from the excessive greed of producers unrestrained by market discipline, was not working, for the basic logic of market competition holds that higher prices (and profits) attracts new producers such that supply increases and prices fall rather than stay high unless the cost of a factor of production has increased and stayed high.

To be sure, limits to the supply of food (and the cost of fuel for shipping) could be expected to become more salient as the human population level continues to increase dramatically. Whereas the 20th century had begun with about 2 billion human beings on the planet, the 21st century mark stood at 6 billion; by just 2023, that number had increased to 8 billion. At some point, the Earth’s agricultural potential being relatively fixed, could be expected to run up against increased demand for food. The common experience of having to pay more for groceries during and even after the pandemic due to temporary shocks and the lack of competition that would otherwise increase supply and thus reduce prices could be just a taste of what humans could expect in the 22nd century.

That a species’ population can increase beyond its ability to feed itself was posited by Thomas Malthus (1766-1834) in An Essay on the Principle of Population, published in 1798. The theological significance alone was startling, as the possibility threw off the notion that God had designed Creation and so the existence of God could be inferred from the excellence of the design found in nature itself. Malthus also claimed that famine, war, or disease is nature’s means of naturally correcting a schizogenic (i.e., maximizing) population, and subjecting the creatures who are in God’s image to such hardship hardly seems like part of the design of an omnibenevolent deity.

Therefore, the mechanism of a competitive market assumes not only lower barriers to entry, but also the capacity for increased supply when prices are relatively high, and this second assumption may be increasingly untenable as our species continues to grow while the natural resources of Earth remain relatively fixed, allowing of course for efficiency gains from technological advances. At the very least, from this macro perspective, governments should not shy away from enacting and enforcing anti-trust mechanisms so prices reflect not only demand, but also whatever supply is possible, given the Earth’s natural resources, especially in terms of energy and food (and also housing). Moreover, concurrent and sustained increases in several industries oriented to human sustenance ought to be especially concerning regarding toll from both uncompetitive markets and our species’ growth.


1. Alicia Wallace et al, “Markets End the Day Sharply Lower . . . “ CNN.com, August 2, 2024.
2. David Goldman, “Elizabeth Warren: The Fed Made ‘a Serious Mistake,” CNN.com, August 2, 2024.
3. Ibid.
4. Ibid.
5. Ibid.

Monday, July 29, 2024

Pulling the Curtain Back on President Biden’s Retirement Address

There is an expression in politics referring to how legislation is made; it is likened to the making of sausage, the public display of which is not generally desired. Furthermore, it is unrealistic and even counter-productive for the American electorate to know the intricate mechanisms by which a bill makes its way through Congress before being signed by the president to become a law. Nevertheless, the strategic and self-interested manipulation of public perception by elected representatives in order that the electorate will have an overstated positive view of its representatives, who can have more discretion and thus power with the vote of confidence, is counter to an effective democratic republic, which after all is distinct from direct democracy. I contend that the desire to falsely manipulate popular opinion went into President Biden’s address on his decision to serve only one term, as well as in the comments of high ranking members of his party in support of his decision not to run for reelection. That there might be more political capital, not to mention a better legacy, in being straight with the American people is a possibility that seems to elude American politicians.

American political philosophy posits unintentional beneficial consequences from the pursuit of self-interest, which springs from self-oriented love, as does Adam Smith’s price-oriented theory of competitive markets. That such benefits are possible does not mean that a self-centric pursuit of one’s interest is itself normatively good, and thus laudatory. Indeed, Smith is careful to condition even the unintended beneficial economic consequence of the individual’s pursuit of one’s interest on the presence of competition wherein no individual seller, or oligopolistic group thereof, can sent a price by fiat. Smith even enveloped his economic theory on his other major work, The Theory of Moral Sentiments, the title of which speaks for itself even if such sentiments are in practice hardly strong enough against the love of greed even in a competitive market. Translated into political terms, the check-and-balance vital function in the separation of powers, or branches, of the U.S. Government, and even between the governments of the member states and that of the union, is an institutional means by which the ambition of individual representatives and even governmental bodies can be held back from overreaching at the expense of the liberty of the people. It is vital that the self-interest qua political ambition of elected representatives (as well as their respective appointees) be held in check not only by criminal law, but also by the very arrangement of political institutions within a government, and even between governments in a federal system. 

Of course, in addition to institutional checks and balances, elections should have consequences. An officeholder who deftly trades monetary favors (aka campaign contributions) for support on legislation favorable to the private interest (and thus the officeholder’s own interest in gaining more power) but unfavorable to the public interest or at least the interests of the electorate can be voted out of office at the next election. However, the stealth that the elected representatives usually use to enact such private trades render the electorate’s judgment and thus decision suboptimal. In short, a lot goes on behind the scenes that is pertinent to an electorate’s ability to exercise effective judgment in holding officeholders accountable from the standpoint of the electorate’s interests. It is in the political interest of elected representatives to create and sustain the impression publicly of being worthy of the public trust, so more is needed to counter this natural inclination among the powerful in line with the central principle of a republic that the electorate—the popular sovereign—is superior to its elected representatives—the governmental sovereign. For an agent to willfully mislead a principal, taking advantage of there being too much “daylight” existing between an elected representative and the electorate, is essentially to turn a republic upside down.

Speaking from the Oval Office on television on his decision not to run for reelection, U.S. President Joe Biden said that “saving our democracy” is “more important than any title.”[1] Actually, former U.S. presidents were in the practice of retaining the title. At the time, President Carter, President Bush, President Clinton, and President Obama were still alive. So, President Biden could expect to continue to be referred to as such after his term as president. It was power that he was giving up by not running for reelection. Although he casted his decision as one of voluntarily putting the interests of his party and country above his political ambition, the fact what that his two top advisors had just days earlier explained to him why it was virtually impossible for him to win reelection. Additionally, according to CNN, “Former House Speaker Nancy Pelosi privately told President Joe Biden . . . that polling shows that the president cannot defeat Donald Trump and that Biden could destroy Democrats’ chances of winning the House in November.”[2] The press also reported that Pelosi also told the president that she would make the polling numbers public if he did not bow out on his own within in a week or so. Because the president took “the easy way” rather than “the hard way,” Sen. Chuck Schumer, the Democrats’ majority leader in the U.S. Senate, used a press conference to characterize Biden’s decision as selfless and patriotic, when it was actually a realistic assessment that he would lose power anyway by losing the election. Because Biden took Pelosi’s “easy way” to make the decision on his own, Schumer even said that he “deeply” loved the president. If it was love, it was a very conditional sort.

As if Schumer’s declaration of love were not over the top enough, Biden “presented himself as a truth-teller” during his address. He even said, “The truth is that the sacred cause of this nation is bigger than any one of us,” as if he had just selflessly given up power to save democracy in America from a tyranny under Don Trump rather than just been shown the exit by the other top leaders of the Democratic Party.[3] He made no reference to his elderly infirmities and how they could be expected to be worse during a second term, or the intractable electoral math, which in turn was due to the obvious display of the toll that age had already taken on his body during the presidential debate a month earlier.

In short, he was essentially pushed out by his own party because he refused to do the responsible (and selfless) thing by leveling with the American people that he should not serve a second term even if he could. His decision was not really voluntary, as if he was giving up something that he could otherwise have (a second term). His decision was neither selfless nor patriotic, for he had held on to his nomination even when it was clear that he would be too old to be president in a term that would not even begin for six months. He did not “fall on his sword.” Like Schumer’s false declaration of “deep love” for the president, Biden’s claim of giving up power for the good of his party and the nation was a lie, even as he had the audacity to say in his brief address, “When I was elected, I promised to always level with you, to tell you the truth.”[4]

My point is not to criticize Joe Biden or even other leaders of the Democratic Party. Decades earlier, when I was a student at Yale, I had been very impressed in a small-group setting—at what used to be called Master’s Teas at Yale—listening to Sen. Biden discuss the federal deficits and debt and the implications for the international financial system. I raise the case of his public address on his retirement from politics to make a broader claim.

The president said in his address, “The great thing about America is here, kings and dictators do not rule. The people do. History is in your hands. The power is in your hands. The idea of America—lies in your hands.”[5] This case shows just how much the people’s elected representatives can mislead the people in civic matters. The reality behind President Biden’s decision not to run for reelection was much different, much less stellar, than what the president and many elected Democrats presented to the people. The upshot is that the elected representatives, including the president of the United States, are less saintly—less willing to be selflessly patriotic—than the electorate has been led to believe. The need to keep an eye on officials is greater than what is implied by Biden’s address. Government of the people, through elected representatives, is not at altruistic as the political elite, for selfish reasons, would like the people to believe. Rather than trying to save American democracy, Pelosi and Schumer did not want to see the president’s reelection campaign result in Republican control of both chambers of Congress. This issue here is thus not Joe Biden, or even the Democratic Party; rather, the problem is how little the American people actually see and know of the real motives and strategies of the political elite, which includes both parties.

Assessing candidates at election time is likely not as effective as the American electorate  believes on account of being subtly manipulated from afar; more is kept from the electorate than it realizes concerning the people running for public office. On Capitol Hill and in the West Wing, more effort than the American people realize is put into how things will be perceived by the people. For example, it is enough that the people perceive members of Congress being vocally critical of powerful CEOs, such as Lloyd Blankfein of Goldman Sachs in the wake of the 2008 financial crisis and Mark Zuckerberg of (formerly) Facebook during the user-data privacy scandal, who contribute lots of money to political campaigns (which generally is not well publicized), without actual legislation being enacted contrary to the financial interests of the CEOs or their companies. It is enough that the public sees angry elected representatives. The superficial implication is that they are protecting the public interest so the electorate can have confidence in its public officials rather than having to double the effort to disentangle big business from Congress and the White House.

To put a private, or partial, interest above the public good is to doom the later to interests that care little of the good of the whole relative to the welfare of the part. The good of a whole is never the same as that of one of its parts unless all of the parts are identical. The interests of the United States do not reduce to those of Texas any more that those of the European Union reduce to those of France. This is why the political dominance of a large state in either union at the federal level is problematic, such as was evinced by Germany in E.U. policy during the European debt crisis.

The private (including political) interests of an elected representative are, I submit, not generally speaking well known by voters, who in turn are tasked with assessing the qualities of candidates rather than merely voting on policy positions. Perhaps more of the latter could be decided by referendum, leaving to elections the primary matter of the sort of people who are to be elected to serve the public interest. Moreover, popular sovereignty could stand to be strengthened, given the distance between elected political elites and their electorates. Simply put, that distance should be reduced, and journalism can go only so far, especially with journalists relying of officeholders for interviews.

In the film, The Wizard of Oz, Dorothy’s dog Toto pulls open the curtain that had been hiding the actual Wizard from view. Pay no attention to the man behind the curtain! This is one of the all-time iconic lines in cinema. And Toto too! is not far behind. It is in the Wizard’s interest to keep his actual condition—that he is just a person rather than a giant head with raging flames on both sides—hidden from view so he can continue to exercise extraordinary power by instilling fear. It is interesting to ponder what this uncovering might look like writ-large in America’s representative democracy. I submit that pulling open the curtain that acts as a beltway around Washington D.C., formerly a swamp, is vitally needed to restore the proper relationship between popular and governmental sovereignty in the United States.


1. Eli Stokols and Lauren Egan, “Biden Is Passing the Torch ‘to Unite Our Nation,” Politico, July 24, 2024.
2. M.J. Lee, Jamie Gangel, and Jeff Zeleny, “Pelosi Privately Told Biden Polls Show He Cannot Win and Will Take Dow the House; Biden Responded with Defensiveness,” CNN, July 18, 2024.
3. Eli Stokols and Lauren Egan, “Biden Is Passing the Torch ‘to Unite Our Nation,” Politico, July 24, 2024.
4. Ibid.
5. Ibid.

Tuesday, July 23, 2024

The E.U. on Hungary: Beyond Symbolic Measures

Any federal system of government must function fundamentally as a unit even though the states are semi-sovereign, as is the federal level. The Nullification Crisis in the U.S. during the nineteenth century highlighted the plight a federal union would face were state governments able to ignore federal law unilaterally. Fortunately, President Jackson was able to get South Carolina to stand down on this point. In 2024, the E.U.'s federal officials were having trouble getting the state of Hungary not only to apply a federal directive within the state, but also to stop contradicting the E.U.'s foreign policy against Putin's Russia in Ukraine by engaging in diplomatic trips of appeasement. A federal system that lacks the means procedurally or substantively to protect federal prerogatives against the contradictory actions of wayward states is not viable in the long term.

Every E.U. state government is bound by Article 24.3 of the E.U.’s basic law, which mandates that those governments must support the union’s foreign policy “actively and unreservedly in a spirit of loyalty and mutual solidarity.”[1] It is not often that a E.U. official mentions the obligation of loyalty in reference to the states toward the union, but the normative glue should not be ignored or even trivialized, especially given the preponderance of residual sovereignty that the state governments enjoy in the E.U.’s federal system. Josep Borell, the E.U.’s foreign minister, was referring to Viktor Orbán of the state of Hungary, whose “peace mission” to Moscow and Beijing coincided with the state of Hungary’s six-month presidency of the Council of the E.U. in early July, 2024. “Any so-called ‘peace mission’ that ignores” that Russia is the aggressor in Ukraine “is, at the end of the day, only benefitting Putin and will not bring peace.”[2] Borell was referring back to Orbán’s previous characterization of the union’s supplies of weapons and ammunition to Ukraine as a “pro-war policy.”[3] “The only one who’s pro-war is Putin,” Borell stated.[4] Referring to Orbán’s statement as belonging “to the realm of a lack of loyal cooperation,” Borell said, “We have to send a signal, even if it’s a symbolic signal, that being against the foreign policy of the European Union and disqualifying the policy of the European Union as the ‘party of war’ has to have consequences.”[5] The informal meeting of the foreign ministers of the states, known as Gymnich, would take place in Brussels rather than in Hungary’s state capital, Budapest. This move is indeed symbolic, for the official meetings are not subject to the 6-month rotating presidencies of the states.

The question is thus whether Borell’s use of the symbolic was sufficient to enforce Article 24.3 on the loyalty that the state governments owe to the union with respect to its foreign policy. I submit that a symbolic gesture, at best a “slap on the wrist,” is not sufficient to forestall undercutting moves by the governors of the state governments, for the political interests of the latter may differ from that of the union as a whole, and symbol is no match for real politic.

As Borell himself admitted, Orbán’s continued veto of military assistance for Ukraine was ongoing, and it was totally legal under E.U. basic law. Moving an informal meeting to Brussels would not change Orbán’s use of his state’s veto in the European Council. Nor would the states sending lower-level civil servants to an informal meeting of state interior/justice officials in Budapest. Arnoldas Abramavicius, Lithuania’s Deputy Minister of the Interior, refused to call sending lower level politicians a boycott; he would not even state that Orbán’s diplomatic trips to Moscow and Beijing violate the E.U. foreign policy against Russia. “I think this is a reaction towards Hungary’s external activity maybe sometimes not adjusted to the European framework,” he said at the meeting.[6] The diplomatic trips designed to negotiate with an aggressor with whom the E.U. would not negotiate is worse than merely not being coordinated or adjusted with the federal policy, which, by the way, is not a framework.

In fact, Borell undercut his argument and the E.U. itself by how he put the matter of the states’ foreign policy power. “Each member state is sovereign on its foreign policy—true. But as far as they’re members of this club, they have to obey the treaties.”[7] Given Article 24.3, however, each state’s foreign policy was not sovereign, for it could not contradict the union’s foreign policy. Moreover, the E.U. itself was not a club even as of 2024. The European Court of Justice had repeatedly ruled that federal laws, regulations, and directives are binding on the states, and the ECJ’s decisions are binding on the state courts as well as the state governments. Furthermore, clubs do not have a directly elected legislature such as the European Parliament, and, moreover, all three branches of government. Given the preponderance of governmental sovereignty residing with the states in 2024, the E.U. could ill afford being rhetorically diminished by one of its own officials, especially in the midst of a struggle between the union and a sitting governor.

A letter signed by over 63 state lawmakers addressed to the top three E.U. officials insists that Hungary’s Orbán had “caused significant damage” by his two diplomatic trips, so it was not merely a matter of not being adjusted to the E.U.’s foreign policy in which Putin is squarely the aggressor in the war.[8] Appropriately, the state officials called on the union “to suspend Hungary’s voting rights in the European Council” because “mere verbal condemnation” of the wayward state government has “no effect.”[9] Nor does merely moving the location of an informal meeting and sending lower-level officials.

That the European Council had not already suspended Hungary’s voting rights not only due to Orbán’s efforts to appease (Von der Leyen’s word) Putin but also the European Court of Justice’s ruling that Hungary had refused to implement a federal directive suggests that the union is vulnerable to defections by state governments with all but symbolic impunity. To apply anything close to unanimity for the voting rights of a state in the European Council to be stripped is itself not only foolhardy, but undercutting as well. An amendment applying qualified majority voting to sanctioning a violating state in the European Council would improve the coherence and functioning of the union at the federal level in line with the rule of law, while a state government deprived of its voting rights could still appeal to the European Court of Justice concerning the fairness of the mechanism and how it is being applied.

It bears noting that the Titanic could not avoid the iceberg in part because the ship’s rudder was too small, given the size of the ship. Or, if an analogy of several ships is preferred, a line spoken by a European in the film, The Godfather, Part III, applies: “Our ships must all sail in the same direction.” For one ship to sail not only apart from the others, but then into them must surely not be permitted. Appeasing or even just negotiating separately with Putin while referring to the E.U. foreign policy as pro-war even while vetoing military assistance to Ukraine should have been met with more than a symbolic response by E.U. federal officials, and the fact that it was not is an indication that the federal system contains a significant vulnerability, or weakness, that should be redressed especially before additional states are permitted to join the union.


1. Jorge Liboreiro, “Borrell Accuses Orbán of Disloyalty and Joins Boycott Against Hungary’s E.U. Presidency,” Euronews, July 22, 2024.
2. Ibid.
3. Ibid.
4. Ibid.
5. Ibid.
6. Caitlin Danaher, “E.U. Moves High-Level Meetings Out of Budapest to Protest Orbán’s Ukraine War Stance,” CNN, July 22, 2024.
7. Jorge Liboreiro, “Borrell Accuses Orbán of Disloyalty and Joins Boycott Against Hungary’s E.U. Presidency,” Euronews, July 22, 2024.
8. Caitlin Danaher, “E.U. Moves High-Level Meetings Out of Budapest to Protest Orbán’s Ukraine War Stance,” CNN, July 22, 2024.
9. Ibid.


Friday, July 19, 2024

Differentiating the European Council and Parliament: Meloni of Italy

At the federal level of the E.U., the European Council, like the Senate in the U.S., represents the states, whereas the European Parliament, like the U.S. House of Representatives, represents citizens—that’s right, E.U. citizens. The theory behind this difference is a modification of traditional federalism theory, wherein only the polities in a federation are represented at the federal level. In this traditional way of doing federalism, individuals, or citizens, belong only to the first level of political organization. Althusius’s Political Digest (1603) describes that theory, borrowing a lot from the example of the Holy Roman Empire. The advent of both polities and federal citizens being directly represented at a federal level was born out of compromise during the American Constitutional Convention in 1787. The E.U. replicated the structure, wherein the state governments and E.U. citizens (or legal residents) each have their own channel of access to affect federal law and policy on the federal level. For one of the two to cross over and eclipse the other in its own channel is suboptimal because both vantage points contribute to sound federal law in a way that enables them to protect their respective interests, which are not identical. It is thus not appropriate for a state government, including its governor or head of state, to direct members of Parliament how to vote on a given bill, whether their districts are within or outside of the state.

On July 18, 2024, Giorgia Meloni, the governor of the E.U. state of Italy, “ordered the 24 MEPs,” or members of Parliament of her state-level Fratelli d’Italia, or Brothers of Italy, group “to vote against the re-election of Ursula von der Leyen as president of the European Commission.”[1] I contend that those representatives were instead duty-bound to vote the interests of their respective voters rather than serve as an additional resource for the state government at the federal level, or else to vote along with the rest of the European Conservatives and Reformists Party in the Parliament, rather than as a state group representing the state’s government. This is admittedly a different perspective than that which both American and European media outlets have intentionally or unintentionally absorbed from the Euroskeptic ideology wherein the European Parliament is really even a legislative body and thus does not have its own parties (and interests).

From an American perspective, it would be like the governor of a state ordering representatives of the U.S. House of Representatives to vote a certain way, rather than in line with the wishes or interests of the constituents in the respective districts or the federal-level party recognized by the U.S. House.  The U.S. Senate is where the state governments are to exercise their authority at the federal level even though this line is more direct in the European Council because the heads of the state governments themselves sit in that chamber, rather than separately elected senators. Indeed, Meloni already had her chance to vote against Von der Leyen’s nomination in the European Council—Meloni abstained. For her to order members of Parliament to vote against the nominee essentially doubled Meloni’s, and thus her state government’s, role at the federal level. Not only is this excessive; it also eclipses the voice of the E.U. citizens in the districts of the MEPs who followed Meloni’s order. That is to say, the order upset the balance of inputs—that of the states and the E.U. citizens—feeding into the federal level.

Given the staying power of the principle of unanimity at the federal level as of 2024, the power of the state governments at the federal level was arguably too much anyway for the viability of the E.U.’s functioning at the federal level. Eclipsing the voice of the people by attempting to subordinate their directly elected representatives (even though by party) worsens the imbalance.

In his text, Federal Government, Kenneth Wheare describes a federal system as wheels within a wheel. All of those should be in balance for the system as a whole to function well. I disagree strongly with his claim that a balance of powers between the states and the federal institutions is not necessary. He claims that the state governments need only have one domain of authority that is autonomous of the federal government for the federal system to be viable, but such an imbalance would be tantamount to political consolidation rather than dual-sovereignty, wherein the states are not eclipsed by federal preemption and power. After nearly 250 years, the U.S. federal system was arguably much closer to consolidation than in that union’s first 50 years. After 30 years, the E.U. suffered from the opposite danger: too much state power, and thus a risk of dissolution. Although strong institutional safeguards to prevent eventual consolidation at the expense of viable federalism were advisable in the E.U., given the historical trajectory of the U.S. towards consolidation in an empire in which one size does not fit all, given the different cultures therein, too much of a role for the state governments at the federal level was itself a danger for the E.U. in 2024. The staying power of the principle of unanimity alone threatened to excessively encumber E.U. policy-making and law, and thus fuel Euroskeptic movements toward the dissolution of the union (which is neither a bloc nor an international organization). Furthermore, eclipsing the sacred relationship between the representatives in the Parliament and their respective constituencies, E.U. citizens, worsens the “democracy deficit.” Just as the U.S. House was originally intended as the democratic body at the federal level in the U.S., as U.S. senators were initially chosen by their respective state governments and the president by the Electoral College, the European Parliament can be seen as the sole repository of democracy in the European Union. A look at how the Commission’s president is nominated and elected without E.U. citizens voting on the question and the fact that the European Council represents the state governments rather than their respective peoples directly demonstrate the importance of the Parliament in terms of direct representative democracy at the federal level.

In short, the E.U. state governments should keep their paws off the European Parliament; the European Council and the Council of the E.U. is where state-level officials can affect federal policy and law at the federal level. If anything, the authority of the Parliament should have been strengthened in 2024 relative to the powers of the Commission and especially the European Council (and the Council of the E.U.). At the very least, all of the political groups in the Parliament should have been recognized at the federal level as political parties in themselves rather than as informal groups of state-level parties. In 2024, the drastic imbalance in the federal system in favor of the state governments, whose individual and collective interests are in theory and practice different than that of the E.U. both as a federal system and in terms of federal policy and law, was a major problem that did not need to be worsened by encroachments. From a federal perspective, the governor of the E.U. state of Italy was coloring outside the lines in seeking more influence at the federal level. Objecting to this does not suggest in the least that protections for the state governments against possible federal encroachment, as has happened in the U.S., should be disabled or torn down.