European Affairs

 

Spring 2000

Letter from the Editor

 

Leader in Focus
Toward a Stronger Alliance

Europe Has the Will to Build a Common Foreign and Security Policy
by Javier Solana, Secretary-General of the Council of the European Union and High Representative for the Common Foreign and Security Policy; Secretary-General of the Western European Union

Despite some skepticism, especially in the United States, the European Union is determined to forge a common foreign and security policy. It has the political will to succeed. Although Europe and the United States will not agree on every policy detail, the common foreign and security policy will be in the interest of the United States and it will not cause divisions in NATO.

Let's Not Build a New Wall Across the Atlantic
by Madeleine K. Albright, US Secretary of State

Europe and the United States have made great strides toward reinforcing transatlantic cooperation and strengthening the Alliance over the past year. The challenge now is to integrate Kosovo and the rest of Southeast Europe into the Euro-Atlantic mainstream. It will also be vital to ensure that new divisions do not separate Europe and the United States, which share common destinies.

 

Trade Relations
Communicating - and Failing to - Across the Atlantic

The Need for a Transatlantic Early Warning System
by David L. Aaron, US Under Secretary of Commerce for International Trade

Transatlantic economic and trade relations are becoming increasingly acrimonious and the list of disputes is lengthening. As a result, the unity forged in the common struggle against the former Soviet Union is fading. One way to help would be an effective early warning system enabling problems to be tackled before it is too late.

Transatlantic Business Dialogue Presses for More Open Markets
by Bertrand Collomb, EU Chairman of the TABD and Chairman and CEO of Lafarge

Transatlantic trade is at an all time high, and globalization is creating tremendous economic benefits for the world's employees, consumers and businesses. Yet many people are dissatisfied and there is a lack of understanding and communication. The five-year-old Transatlantic Business Dialogue is one way of improving communication and nipping problems in the bud. It has already notched up some notable successes.

 

Special Report
The Euro's Impact on Europe and the United States

The euro has fallen almost non-stop against the dollar since its introduction at the beginning of 1999. But it is leading to big changes in Europe, as the new European Central Bank takes over responsibility for setting interest rates in the 11 members of "Euroland." Because the euro has so far been widely seen as a weak currency, Americans have generally not paid much attention to its impact on the dollar or on US-European relations. But its effects are bound to be substantial. Three writers, two European, one Texan-American, assess its role so far.
View the Introduction to the discussion

The Case for a Mr. (or Ms.) Euroland
by Steven Everts, Research Fellow, Centre for European Reform, London

The euro will eventually lead to a decline in the dollar's international role, but it will make Europe a stronger international partner for the United States and provide important opportunities for strengthening the transatlantic partnership. The euro zone countries should appoint a "Mr. (or Ms.) Euroland" to represent the zone in contacts with the United States and other countries.

The ECB: Too Much Focus on Prices, Not Enough on Growth
by William Keegan, Economics and Associate Editor, The Observer, London

The way in which the European Central Bank was created, and the composition of its leadership, has given it a bias toward controlling inflation, rather than promoting economic growth. It needs to be given guidelines encouraging it to pay more attention to creating jobs, like the US Federal Reserve.

A Skeptical Texan Wishes the Swooning Euro Well
by Robert D. McTeer, Jr., President and CEO, Federal Reserve Bank of Dallas

This Texan did not expect European governments to wed themselves to the euro, but the wedding came off as planned - aside from some swooning on the bride's part. Attention now turns to the marriage.

 

In The News
The Rise of "Alpine Populism"

Sanctions Against Austria Pose Troubling Questions for the EU
by Michael Calingaert, Executive Director, Council for the United States and Italy; Guest Scholar, The Brookings Institution

The entry into the Austrian government of the extreme-right Freedom Party led by Jörg Haider provoked what may have been an over-hasty reaction from Austria's 14 partners in the European Union. By imposing bilateral political sanctions on Austria, the other EU countries raised a number of difficult questions to which there are as yet no clear answers.

Europe's Extreme Right Is Pervasive But Not Invincible
by Baudouin Bollaert, Diplomatic Correspondent, Le Figaro, Paris

Austria is not the only European country where support is growing for extreme-right political parties. But the nature of the phenomenon differs from country-to-country, and there is no reason why the rise of the extreme-right should be seen as inevitable.

 

Politics and Society
The Fight Against Corruption

Progress Against Corruption, But Still a Long Way to Go
by Nancy Zucker Boswell, Managing Director, Transparency International-USA

Much progress has been made in the international fight against corruption in the last few years. There have been rapid and dramatic changes in the attitudes of governments, the international financial institutions and the private sector, all of which are now joining more enthusiastically in the fight. The recent OECD convention against bribery is a major milestone. But much remains to be done.

Corruption Should Be Treated as a Problem of Bad Governance
by Daniel Kaufmann, Senior Manager of the Governance, Finance, and Regulation Group, World Bank Institute

If the fight against corruption is to succeed in any given country, the issue must be "de-personalized" and "de-emotionalized." Corruption must be defined in technical terms and presented as being just like any other major economic problem. In this way, it can be treated as a problem of governance, rather than a moral issue.

 

Industry and Technology

Food Safety: Continuous Transatlantic Dialogue Is Essential
by David Byrne, Commissioner for Health and Consumer Protection, European Commission

Consumers' confidence in Europe's food safety regime has been badly shaken by a series of crises, including those over "mad cow" disease and dioxin-poisoned poultry. The European Commission is proposing steps to restore confidence, including the creation of a new European Food Authority and expanded application of the so-called Precautionary Principle that is anathema to many in the United States.

 

Opinion
A New Missile Crisis?

NATO Heads for a showdown Over Ballistic Missile Defense
by Robert E. Hunter, Senior Advisor, RAND Corporation

NATO is heading toward what may be another acrimonious and anxiety-filled debate, this time over US plans to build and deploy a so-called National Missile Defense (NMD). The former US Ambassador to NATO warns that unless the issue is handled with great amounts of leadership and common sense, the Alliance will face a crisis of major proportions.

 

Book Reviews

"Gorby" Still Clings to the Socialist Dream
On My Country and the World. By Mikhail Gorbachev
Reviewed by Peter S. Rashish

Worldly Optimism of a Third Way "Guru"
Runaway World: How Globalization Is Reshaping Our Lives. By Anthony Giddens
Reviewed by Reginald Dale

Is the "New Economy" on the Wrong Track?
In Praise of Hard Industries: Why Manufacturing, Not the Information Economy, Is the Key to Future Prosperity. By Eamonn Fingleton
Reviewed by Carola Kaps

 

Letters to the Editor

Church Lewis: Good and Bad News for Europe's Stock Markets

Denis Lamb: A More Capitalist Europe is Ready to Boom