Alexander Mirtchev, Contributor, 01/04/2012
“While the EU has modernized and expanded in ways that its founders may not have envisioned, the architecture that underpins the Union has not adapted to the realities of a globalized twenty-first century”, notes Dr. Alexander Mirtchev, President of Krull Corp., Vice-President of the Royal United Services Institute for Defence and Security Studies and Forbes Contributor. Mirtchev argues that, in effect, “we are all Europeans now, as the euro zone crisis threatens global economic security and threatens to evolve into a renewed global economic crisis.” Genuinely addressing these threats likely will mean rebuilding Europe from the bottom up and laying the foundation for a new era of European growth. To achieve this, Mirtchev believes that the EU would benefit from an institutional makeover which would include both the lengthy process of amending the EU treaties to bring about a closer fiscal union and at the same time undertaking measures in the short-term that demonstrate to the markets that European countries, particularly Germany, are willing keep the distressed economies of Europe afloat. Further, the EU could benefit from a hard look at the sustainability of its current socio-economic model. Indeed, the roots of the “economic problems of the euro zone lie ultimately in the structural imbalances at the heart of the EU.” Considering a potential path back to growth, Mirtchev suggests that EU leaders implement measures, such as a revamping of its painfully rigid labor market, to ignite entrepreneurship, innovation and productivity. Ultimately, addressing the challenges of the European sovereign debt crisis may appear trivial from an intellectual point of view, but they may prove far from trivial from a historical perspective.