.American and European Unions, Compared(1)
The (1648) Treaty of Westphalia created the modern nation-state by respecting sovereignty within agreed boundaries. Soon, everyone had a sovereign King. Today, Europeans live in republics, but wish to unite for economic benefits. Like others however, they found that hard to do, and so began with monetary union, alone. Unlucky timing: world monetary crisis suddenly struck.
SEVERAL years ago, I attended a public meeting at the Federal Reserve, surrounded by well-dressed strangers. At a contentious moment in the discussion, the man next to me rose and announced he was the Finance Minister of a large European nation and had a prediction to make. Within twenty years, he believed, there would only be three economically functioning nations in the world: America, India, and China. Since he was sitting next to me, I asked him the obvious question: what about Europe, what about Japan? He shrugged me off, as if the question was too stupid to answer. As things have turned out, maybe it was.