Thursday, October 5, 2023

Europe's Responsibility: Breaking Free from the Free-Rider Role

 


Just as a dormant volcano awakens to reshape the landscape, Europe must rise from the ashes of free-riding and become an active force in international affairs. 

The recent passage of a stopgap funding bill by the U.S. Congress, one that notably lacks funding for military aid to Ukraine, is undoubtedly a concerning development. However, it serves as a stark reminder that Europe must play a more active role in providing assistance to its neighbor in distress. Europe, often criticized as a "free-rider continent," should cease its reliance on American efforts and take responsibility for its own security and global contributions.

For decades, Europe's defense has leaned heavily on the United States, relegating it to a supporting role even as conflicts unfold near its borders. Economically, Europe has often lagged behind in innovation, preferring to catch up with rivals rather than lead the way. Even its commendable environmental goals, crafted in Brussels, have been partly facilitated by importing products from distant regions, products once manufactured in carbon-intensive factories that Europe shuttered years ago. While this approach may appear clever, it has allowed Europeans to enjoy a high standard of living, shorter workweeks, and early retirement.

Defense has been a particularly contentious issue for Europe. The collective military spending of the 34 European countries within NATO or the EU is less than half that of the United States, despite having a larger economic output and nearly double the population. European NATO members spend a mere 1.7% of GDP on their armed forces, well below the 2% NATO target and significantly less than the 3.5% allocated by the United States. Major European countries like Germany, Italy, and Spain fall short of their defense spending commitments. These disparities persist despite increased military spending after the U.S. signaled its pivot to Asia a decade ago, and the uncertainties associated with Donald Trump's presidency.

Furthermore, Europe's military spending often goes to redundant national programs and pensions instead of advanced equipment. The recent events leading up to the conflict in Ukraine exposed these deficiencies, with the United States shouldering basic military tasks such as surveillance flights, while Europe complained about its limited access to intelligence it had done little to produce.

The funds not allocated to defense efforts could have been invested in groundbreaking innovation. Yet, Europe has continued to lag behind others in research and development spending, dedicating a third less of its GDP to this endeavor compared to the United States and Japan, and even falling behind China. Economic theory suggests that poorer nations should converge with richer ones as they learn from their practices. However, Western Europeans remained a quarter less affluent than Americans in 1990 and continue to lag behind today. They work shorter hours, benefiting from the efforts of those who toil harder.

Some Europeans may dismiss the cutthroat capitalist model of the United States, and even that of China. Nevertheless, economists argue that such competitive systems create conditions for innovation that Europe then adopts at a lower cost. Europe's more benevolent form of capitalism has failed to produce globally competitive companies, with most major tech firms originating from the United States or increasingly, Asia. Pharmaceutical breakthroughs are funded by high American drug prices, with government-run health systems in Europe subsequently procuring the same drugs for less. While there have been some successes, such as German companies pioneering mRNA vaccines, much of the groundbreaking research in science and technology occurs at universities and companies outside of Europe.

Even the European Union's ambitious plans to reduce its carbon footprint depend on the work done by others. The bloc's pledge to achieve "net zero" emissions by 2050 is commendable, but a portion of the progress made thus far is deceptive. Per capita emissions in Denmark have fallen by approximately half since 2000, but the pollution it now imports, due to the outsourcing of manufacturing to countries like China, has surged during the same period. Accounting for the additional carbon emissions generated in other countries reveals that Danish emissions have only decreased by one-third.

Without putting it in so many words, while the absence of military aid funding for Ukraine in the recent U.S. Congress bill is concerning, it serves as a call to action for Europe. It is time for Europe to shed its image as a "free-rider continent" and take on a more active role in addressing its own security and global responsibilities. Europe must stop relying solely on American efforts and embrace a greater sense of responsibility and initiative.

Stuck Together?

As mentioned earlier, it is imperative for Europe to assume greater responsibility and shed its reputation as the "free-rider continent." The current spotlight is firmly fixed on Europe's hesitancy in matters of defense. The disarray during the evacuation in Afghanistan in 2021 served as a stark reminder of Europe's heavy reliance on American assistance. However, the eruption of conflict in Ukraine underscores this point even more profoundly.

In this crisis, it was the United States that took the lead in raising the alarm, not the European Union. American forces were the ones strategically deployed across the continent in a somewhat futile attempt to deter Russia's actions. Emmanuel Macron of France notably and provocatively hinted at the looming "brain death" of NATO back in 2019, hoping to galvanize Europeans into assuming greater control over their own defense. The French president might find solace in the fact that the alliance appears to have regained its vigor. Despite his calls for "strategic autonomy," the reality remains that America continues to maintain a firm grip on leadership, with Europeans united in their willingness to follow.

Europe is beginning to grasp the limitations of remaining in the backseat of global affairs. However, the journey towards becoming a leader necessitates both the requisite resources and a clear sense of purpose. Vladimir Putin's invasion of Ukraine, remarkably, has sparked a sense of unity among a diverse group of European nations, often embroiled in internal discord within an imperfect union. In this context, the role of a follower may no longer hold the same appeal. Europe must rise to the occasion, cultivate its resources, and adopt a more assertive stance in shaping its own destiny.

 

No comments:

Post a Comment

China’s Fiscal Band-Aid Won’t Stop the Bleeding When Trump’s Tariff Sword Strikes

  China's cautious stimulus is nothing but a financial fig leaf, barely hiding the inevitable collision course it faces with Trump's...