Elite Failure and the Collapse of the EU Project

Part One: The Democratic Deficit

By rights the European Union (EU) should have been a global empire. With a population of almost 500 million (100 million more than the US) and a well-educated, technically advanced workforce, it should be a comparable power to the US and China. OK, you can argue that they lack critical natural resources, unlike the US, which is a true autarky but Russia always fulfilled that role, delivering cheap commodities on time and at a favorable cost. But now they find themselves in a financial and social death spiral. So, what went wrong?

The idea behind the EU goes right back to the 1920s, with luminaries at the time expressing a need for a pan-European structure, like Austrian aristocrat Richard von Coudenhove-Kalergi (who  founded and ran the Pan European Union – a right wing, Christian centric prototype of the current EU, for almost 50 years), left leaning French prime minister Aristide Briand (who advocated a federal Europe to bring an end to the countless French/German wars), French center-left mathematician and politician Emile Borel, British economist John Maynard Keynes, Spanish philosopher Jose Ortega Y Gasset, Greek prime minister Eleftherios Venizelos, Polish statesman and soldier Jozef Pilsudski (who put forward his version of what he called Intermarium – between the seas – which mainly comprised  of the old Polish-Lithuanian commonwealth, including Belarus and Ukraine, but did not include western Europe as it  only went west up to the, then, western Polish border) and Russian communist Leon Trotsky.

They each had a different vision for the future of Europe – for example Coudenhove-Kalergi and Trotsky had diametrically opposed viewpoints on how it should be structured, with the former desirous of a right wing, Christian based Europe, while Trotsky favored a communist Soviet system. But they all agreed on the fundamental point that divisions within Europe had led to numerous wars and economic degradation and that unity would lead to prosperity and peace.

Nothing substantive was done about forming a consensus for the proposed union or indeed the form it would take until the second world war. It was Hitler that actually brought Europe under a single umbrella, albeit an odious one, and many German soldiers, when interviewed after the war, stated that they were fighting for and motivated by a united Europe.

The second world war provided the impetus for moving the project forward. The 1943 Yalta Conference resulted in the first formation, by the UK, the USA and the Soviet Union, of the proto-European state by creating the European Advisory Commission, whose mandate was to put forward solutions to the problems Europe would likely face after the war.

The European Advisory Commission was replaced after the Potsdam Agreement, which provided for for the division of Germany. The three triumphant powers were called the Allied Control Council USA, the Soviet Union and the UK (nominally excluding France but France ended up controlling parts of Germany).

This council fell apart after the flawed election in Poland, which the Communists won, but was marred by pro-communist violence. This was regarded as a blatant breach of the Yalta agreement. The Communist coup d’etat in Czechoslovakia marked the final demise of the Allied Control Council after the London Six power Conference, to which the Soviet Union was not invited. There,  it was decided that it was imperative that Germany, or at least the parts that the USA, France and the UK controlled, should become a Western led democracy.

The relations between the Soviet Union and the other great powers were already strained because of the signing of the 1947 Treaty of Dunkirk. On the face of it, this treaty was designed to offer mutual assistance in case of another attack either by or on Germany, but was regarded as offering mutual protection in case of attack by the Soviet Union.

This stance was confirmed, within a matter of days, by the release of the Truman doctrine, which offered military  support for any country that was being threatened by the Soviet Union, which in turn  led to the formation of NATO. After these events, the Soviet Union, under Stalin, took no part in further discussions with the Western allies and the Cold War was born.

Events in Europe moved apace with the advent of the cold war. Following on from Churchill’s 1946 speech where he called for the creation of a European Union, the Treaty of Brussels was signed, which is regarded as the founding document of the European union.

In addition the Organisation for European Cooperation (the forerunner  of the OECD) founding document was signed in order to manage the Marshall Plan, which was set up by the USA (and seeded with over $13 billion – equivalent to over $174 billion at today’s prices) in order to bring prosperity and democracy to Europe and to provide a bulwark against creeping Soviet encroachment.

In response, the Soviet Union created Comecon, which covered both economic integration between members of the Eastern Bloc (as well as allied states such as the DPRK) as well as bilateral relations. In May 1948 the Hague Congress took place during which the European Movement International, the College of Europe in Bruges (which was created to train future ruling elites to uphold European values of mutuality, freedom and openness) and, most importantly, the Council of Europe, with the goal of upholding human rightsdemocracy and the rule of law in Europe, were founded. The importance of this conference can be recognized by some of the attendees, who represented a cross section of European elites at the time such as Albert CoppéAltiero Spinelli, David Maxwell-Fyfe,  Édouard DaladierFrançois Mitterrand,  Harold Macmillan, Konrad Adenauer,  Paul Ramadier,  Paul Reynaud,  Paul van Zeeland,  Pierre-Henri Teitgen  and  Winston Churchill.

Note, the council of Europe is often confused with the European Union, mainly because the EU adopted its flag, but is, in fact, a separate organization.

The formation of the structures of the future European Union, led a French politician, Robert Schuman, to create the Schuman Declaration, on May 9th 1950 (which is now celebrated as Europe Day). He proposed that West German and French Coal and Steel industries be brought together in order to foster cooperation between former belligerents, France and Germany, leading to some form of political union.

This led in turn to the Treaty of Paris, which was not just signed by the two protagonists, but also by Belgium, Italy, Luxembourg and the Netherlands (but not the UK) under which the European Coal and Steel Community (ECSC) was formed and, importantly, a degree of political integration was declared.

The ECSC also led to the formation of the European Economic Community (EEC), which was later ratified by the Treaty  of Rome. This was regarded as the de facto founding of what would later become the EU.

Note that the leaders of this community were not elected but were appointed, which has led to the undemocratic structure of the future EU that plagues it today. The ECSC was backed by the vast funds available from the US under the Marshall Plan, which gave it the breathing space to create the future political structures of the EU, such as the European Commission and the European Parliament (initially called the European Parliamentary Assembly). This parliament cannot be regarded as a true legislative body in that it cannot propose legislation but exists merely to rubber stamp legislation proposed by the European Commission or the European Council (who propose the President of the EU). It doesn’t even have a permanent home as it shuttles between Strasbourg and Brussels, with the administration and bureaucracy located in Luxembourg (which was the original home of the parliament).

Initially the European Parliament was, under the Treaty of Rome, appointed; primarily, because the members could not agree on a voting structure. By the time it changed from an assembly to a parliament in 1962, there still was no consensus on how voting in members of the new parliament were to be chosen. As a compromise, the members were chosen based on the electoral systems in place in the member states. Direct parliamentary elections were not held until 1979 and even then, it was based on a party list system in which a constituent had no say in who was supposedly representing them, but instead voted for a party who in turn assigned the seat to members of its own choosing.

From the start, the European Parliament tried to create the structures of the EU and to take certain aspects, such as the choice of the EU President, under its control but the structure of the putative union prevented its primacy. Instead, it was ‘consulted’ on proposed legislation (even fundamental proposals such as the Schengen agreement) and had, up until the signing of the Lisbon Treaty (aka the European Constitution), no control over the budget. Notably, this latter document was renamed the Lisbon Treaty as the original constitution was rejected by a majority (55%) of French voters and almost 60% by the Dutch in referenda held in 2005.

Even though the Lisbon Treaty was indeed a constitution and therefore a fundamental document of which the population of the EU should have been consulted, But, no countries, aside from Ireland, was allowed a vote on it (Britain, under Gordon Brown refused a referendum, primarily because the Dutch also voted against it and he was concerned that the British would too, so, instead he proposed a parliamentary debate, which was heavily whipped to ensure that no opposition could arise and no vote was taken). Being renamed as a Treaty (in fact it was just the original constitution in a smaller font – in order to make it look less all-encompassing – with a new cover page – the ex French President Valery Giscard d’Estaing, the chair of the Constitutional Convention that drafted the text, passed it off by saying: “the difference is one of approach, rather than content.”) meant that under EU member states’ democratic rules, the people didn’t need to be consulted. So, the French and Dutch referenda were effectively nullified by their respective senates.

The Irish also rejected the treaty, but under what was to become normal EU voting procedures, the referendum was simply run again and again, with a few political points being conceded, until the Irish relented. These concessions have since been largely nullified.

Referenda, when they are run, are almost always ignored (except Brexit); for example, after the 2006 Dutch referendum on the EU-Ukraine Association Agreement, a 61% voted against the proposal,  it was adopted nevertheless, only with a ‘explanatory declaration’ added to the treaty.

Political differences, even during the embryonic stages of the creation of the EU, particularly the lack of any sort of consensus regarding the electoral system, should have set alarm bells ringing regarding the viability of the project. But these obvious flaws were papered over and the project continued

The EU has, particularly since the adoption of the Lisbon Treaty, been marked by subterfuge where the public is told one thing but with the EU actually going forward with something different. In part two we’ll look at how the EU has deviated from public opinion, particularly on closer political union (which was proposed way back in the 1940s), which the populations of the member countries plainly don’t want but which the EU elites are hell bent on implementing. The public vision is primarily about a customs union and the free passage of people across borders (which is what was proposed in the UK’s referendum in the 1970s on whether it should stay in the European Customs Union – as Edward Heath, the then Prime Minster, had unilaterally decided to join without any public consultation – there was no mention of closer political integration).

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18 comments

  1. JW

    The EU is an undemocratic, authoritarian, globalist abomination.
    I can’t possibly know, but am fairly sure, that the vast majority of its nations populations would vote to leave it if ever given a real chance to do so.

    Reply
  2. Zagonostra

    The EU has, particularly since the adoption of the Lisbon Treaty, been marked by subterfuge where the public is told one thing but with the EU actually going forward with something different.

    Right out of Trump’s playbook.

    Reply
  3. Uwe Ohse

    I’m absolutely sure that the vast majority in most EU countries would vote for stay. Please update your bias against it in the light of things which happened in 2022, and in 2025.

    But yes, the EU has a democracy deficit. Which is worked on, albeit far slower than would be good.
    Now, if only the three global powers would be better in any way…

    Reply
    1. NN Cassandra

      Well, for most people EU still is a net benefit, and of course if it ever breaks up, it wont be pretty for the common folk, see Soviet Union. But the elites are hard pushing the limits and there will be point where the net benefit flips to net loss, even counting in things like common currency, created to make secessions as painful as possible.

      Reply
    2. PlutoniumKun

      Yes, finding data on the publics attitude is easy, there is plenty of data available. The EU as an institution is extremely popular with the general public across Europe, especially in the smaller countries, and if anything is getting more popular, although of course this may be a reflection of a lowering opinion of national and regional governments.

      The EU is, unlike the US or any other ‘Union’ made up of sovereign states – the structure was always intended that the ultimate decision makers are the elected head of States of the individual members, not structures within the EU, including the European Parliament. There are of course ongoing dynamics within the EU and between the EU and individual States that don’t reflect well on anyone, but but claim that it is ‘undemocratic’ is a category error. Increasing ‘democracy’ for the EU means subsuming the democratic powers of individual States, which has always been unacceptable to the electorates of pretty much all the countries of the EU. What the EU needs is more transparency and accountability, and for individual countries to call renegade Commission members to heel, not some abstract notion of democracy.

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      1. Ignacio

        My experience is that people in general (in Spain) don’t spend much time thinking about the functioning of the EU or its decisions. Everything from the EU descends as the Tablets of Moses which cannot be challenged. No political diatribes and an atmosphere of consensus is what is transpired. That is the driver of “trust” on EU institutions. A religion it is.

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        1. Carolinian

          So it’s supposed to be a benevolent dictatorship–“in technocracy we trust”?

          At any rate thanks NC as some of us enjoy articles like this. We are here to learn.

          The history of the United States was of course all about “states rights” versus centralized government with the “peculiar institution” the mainspring of the conflict. Supposedly the Civil War settled the question but it has lingered to this day with some Northern and Western states notionally threatening to secede from the menacing heartland.

          Meanwhile the elites here have constructed their own benevolent dictatorship of the uniparty–benevolent to them of course. Perhaps the EU was even inspired by our example as a way to keep the dreaded Commies at bay. Certainly Europe seems to be becoming more like us rather than vice versa.

          The American founders were themselves elites but very smart people who studied history and understood all these problems. One of them, Franklin, uttered the phrase that should be printed on our money: “if you can keep it.”

          Reply
          1. Ignacio

            The farther (from the populace) the administration the more “technocratic”. True in the US, true in Europe too.

            These managers are the most PMCish of the PMC. They live in a different planet and are disconnected from the realities in the ground.

            Reply
      2. OIFVet

        IMO the EU is beginning to subsume the sovereignty of its member states at an accelerating pace and popular though the EU is, that’s playing with fire on the national levels. Here’s where EU’s democratic deficit is going to get really exposed and the EU will be up against a fork in the road:
        1. To increase the federalization without asking the populations for their consent and without direct elections for the top EU functionaries. That will be done by increasing the scope of the current internal propaganda and narratives that impose both an urgency to act fast on pre-approved decisions without real public deliberations, while also manufacturing the appearance of concent for these decisions;
        2. To increase its federalization with the populations’ consent, which at minimum would require serious concessions on democratic elections of its top functionaries and increase in the power of the EU Parliament and EU judiciary. In short, something more akin to the US with its Separation of Powers and Checks and Balances;
        3. Muddle along the current path and risk losing both legitimacy and relevancy while wracked by increasing internal contradictions and undemocratic punishment of internal dissent (Hungary will be an interesting case to watch in that regard).

        Bottom line, as both an American and a European residing in Europe, the EU is at an existential point and so far I don’t like what I see – it reminds me far too much of the US post-9/11, of which Trump is the ultimate consequence. Thanks, but no thanks, what with the past track record of Europe producing destruction and killing on truly industrial scale.

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    3. Ignacio

      I believe that EU institutions “reinforce” their legitimacy via the Eurobarometer. According to latest Eurobarometer results, Europeans in general have more trust in the less democratic structure of the EU than in their own state level institutions. How is it possible? By taking away decision making to Brussels and making it something of a “tecnhocratic” directorate, not political and providing limited information so appearing it to be a kind of EU-level consensus. Interestingly if you descend to country-by country results the picture is not so rosy and such levels of confidence in the EU arise from countries which, apparently have a strong faith on the EU, namely Denmark, Lithuania, Portugal, The Netherlands, Sweden, Poland, and Latvia. Interestingly, France is the country showing less trust in the EU.

      Go in this Eurobarometer to question number QB6ab: on “Main prioritiy areas” and what you find there? That “Defence” is the priority area that arises as the main priority area right now. How useful! IMO, the Eurobarometer is a total fabrication obtaining exactly the results wanted.

      Reply
  4. ocypode

    It’s hard to feel sorry for the EU when it was born in the midst of the most brutal colonial repression, France’s experiences in Algeria and Vietnam being the foremost examples. The lack of democracy in its institutions is, in my view, merely a mirror of what each state was enacting in their colonial possessions, in order to impede sovereignty and democracy from arising there. Why would it be any different for the Europeans themselves? Once they “yielded” control to supranational institutions, it is to be expected that they would be treated with a similar point of view that the each country had towards its overseas possessions.

    That being said, great piece on the early history of the EU. I suppose we are now watching its last act.

    Reply
  5. Ken Murphy

    In my view, Europe should have continued to focus on the economic common market after the move to adopt the Euro in the 90s.
    Back when I was an Int’l Bus & Econ major I used to participate in the SUNY Model European Communities (SUNYMEC). Kind of like Model UN, but for Europe. The macroeconomic challenge of moving to a single currency was interesting to me. The move to political union was not. Even back then I felt it was a bridge too far, so to speak.

    Reply
  6. The Rev Kev

    A longer comment went into the ether but in it I noted that this is the third attempt to unite Europe. The first time was under the French while the second time was under the Germans – both of which failed. Fortunately there were enough people from that second attempt still around that were able to give their “technical” advice on how to organize the present-day EU.

    Reply
    1. Dan Berg

      Highly recommend The Rotten Heart of Europe, Bernard Connolly, for the economics of all this; and rotten it is.

      Reply
  7. Jack Lattemann

    Pertinent and highly recommended is German sociologist Wolfgang Streeck’s new book Taking Back Control? States and State Systems After Globalism (Verso Books), in which he discusses the history of the EU in the context of US-attempted hyperglobalism.

    Reply

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