It is interesting to note that the only area where the EU has some clout is in economy where they have the Euro and it is in this area where people now start to talk about a "Currency War". Apparently all major players, and a few others, are trying to lower their currencies relative others and most of all people want China to raise theirs to perhaps 20% undervalued renminbi according to The Financial Times.
The meeting between China and the EU the last few days was not a success. Wen Jiabao, the Chinese premier, in principle asked the EU to stop bothering them about the renminbi. There would be problems in China in terms of stability if all the Chinese companies would be let to go bust if the renminbi was to be raised. These are important matters since the EU is China's largest trade partner. China prefers to deal bilaterally with individual countries though, which is something they can't do with the Euro.
As people that read this blog might have noticed, I'm very interested in what will happen with EU in the future. Will the member states dominate or will things become more "federal". Furthermore, in an article on the euobserver.com site today they discuss that small countries in general are angry with the larger EU countries because they play national games rather than union ones. In other words if Germany push for something this would be inherently wrong, which is of course not true in general.
Drift into oblivion! This is the fate of the EU if they don't federalize according to some people. Others say that they don't see any problems and that the member states will dominate. Would Wen Jiabao have visited if it wasn't for the Euro and how about the American analysis that the Euro would crash if there wasn't a federalization taking place? The editorial of Göteborgs Posten today calls for an entry into the Euro zone for Sweden. Will Sweden and Britain remain on the side of the Continent?
David Cameron, the steward of the ship Britannica, held his first major speech yesterday. The debate in Britain today is very interesting because they have what some would call an existential struggle going on where Cameron tried but failed, according to The Financial Times, to push for what he calls a "Big Society". Apparently he was not asking the Brits for help but rather made a "call to arms". A Debt War, I guess!
The idea of the Big Society is simple. Replace the state with efforts from the civic society but according to The Times it is not the same old small state talk but rather a new form of caring-for-each-other version of the civic society. That makes Cameron a little like a priest of society. His big moment so far is supposed to be as an architect of the coalition with the LibDems. Fredrik Reinfeldt has had bad luck with the financial crisis so far but now faces a more complicated governing situation where his leadership skills will be challenged in a new fashion. Having a better financial situation than his friend in Britain, he still faces the same existential problems in principle.