EU constitution entrenches the social market economy
The proposed European Constitution would result in a uniform Europe-wide system of high tariffs, subsidies and unreformed labour markets, say critics. Except for direct taxes and foreign policy, social and economic policies of the member states of the EU will be "harmonised."
Instead of providing for competition in economic policies among the nations of Europe, the proposed constitution will result in a cartel of countries constrained in their ability to reform national policies.
One of the main political objectives of the EU is to check the power of the United States internationally. However, the United States has attained its level of economic and political power with a brief constitution that clearly limits the powers of the central government.
The U.S. Constitution, a 4,500-word document, fills 17 A-4 sized pages. In contrast, the proposed EU Constitution is 70,000 words and fills 260 pages.
Since the powers of the U.S. government are limited under the U.S. Constitution, there is scope for competition among the states.
Critics say the European Union has missed an opportunity to reform the highly regulated economies of its member countries and has instead given Brussels the sole power to determine Europe's economic future.
Source: Marian L. Tupy (Cato Institute), Socialism's Farewell Note, July 7, 2003, Tech Central Station: Europe.
For more on the European Union http://www.ncpa.org/iss/int/
FMF Policy Bulletin/15 July 2003
Publish date: 23 July 2003
The views expressed in the article are the author’s and are not necessarily shared by the members of the Foundation.