While insulated decision-making served as an excellent administrative convenience for avoiding responsibility, it also eroded the EU's capacity to respond to unfolding events. The slowness with which EU ministers responded to the crisis caused by the eruption of a volcano in Iceland last year exposed a failure of responsible decision-making. The unnecessary shutting down of European airspace was an act of a political establishment estranged from the ethos of leadership.
But this all pales into insignificance in comparison to the present financial crisis. The pre-requisite for dealing with the decline of the euro is crisis management exercised through political leadership. It requires that political leaders actually tell it like it is and go out and win support for the painful measures required to restore economic stability.
Political leadership is not simply a desirable option. Without winning over a significant section of the European electorate it will prove extremely difficult to restore financial order in Europe. Regrettably, the EU establishment lacks the capacity to offer such leadership. Policy-makers who are used to behind-the-scenes manoeuvring are rarely able to re-invent themselves as persuasive leaders.
It is ironic that even today there are many EU apologists who refuse to acknowledge the negative consequences of this institution's democratic deficit. Amartya Sen, the Harvard University professor and a Nobel prize-winning economist, recently accused the credit rating agencies of undermining legitimate governments and for the marginalisation of the democratic tradition of Europe. He takes strong exception to the unopposed power of rating agencies and their power to issue unilateral commands. Typically, he is oblivious to the unilateral commands of Brussels. No doubt the rating agencies have their own agenda and are no more democratic than the European Commission.
But good on them for forcing the EU to face the real world.
