With the euro dropping to its lowest value in years, the European Union faces its biggest threat yet. What started with a new Greek government acknowledging its higher-than-reported debt has combined with a worldwide economic slowdown. The result? A sovereign debt crisis with fears of a financial meltdown hitting debt-laden countries like Spain and Ireland worse than Zeus’ thunderbolts.
As the Greek economy crumbles like a brick of feta, Western European states are paying billions in bailout money to keep the country afloat, and to prevent the euro from becoming unstable. In response to those fearing that these funds could be put to waste, the Greek government has implemented harsh austerity measures, causing social unrest throughout the county.
Greece adopted the euro in 2002 and was never fully transparent about its debt and widespread tax evasion. The crisis has opened a Pandora’s box of bitter resentment and historical quarrels across the continent.
As the EU’s biggest economy, Germany has been the largest contributor to the bailout. In response to castigating German headlines, more than one politician has smugly suggested that Germany owes the Hellenic Republic for the destruction carried out by the Nazis.
Headlines across the continent are crying foul. Greeks are rioting after losing their financial security. Countries with large debts fear a similar collapse and rich nations are shedding billions in bailout euros. Bulgaria is being investigated by the EU which suspects a similar debt problem. Within an alliance meant to unify Europe, the crisis has aroused resentment and distrust.
But it’s not all Greek to Canada. Aside from maintaining the shared currency, Germany’s motivation for supporting the bailout is implementing a federalist structure for the EU similar to Canada’s provinces.
There are bound to be difficulties with uniting the EU’s 27 states under a federalist system. Our own provincial system essentially encourages each province to pursue its own interests, making it our national Achilles’ heel.
Newfoundland Premier Danny Williams has repetitively stuck it to the feds with actions both strategic and petty. He promotes himself as someone who stands up for his province’s interests and grill any prime minister in the process.
Albertans pay billions from oil revenues to the feds, while Quebec, a province with an earlier retirement age, less work hours and far superior child services, soaks up more than half of national equalization payments. Right-leaning parties have held the Alberta vote for decades, appealing to a continuous desire for autonomy from federal intervention.
Quebec grinds every federal party leader’s gyros, with a large number of seats and constant, stubborn demands to support its welfare state. With the Bloc, it has its own federal component to put its interests above those of the rest of Canada. It’s no surprise Western separatism movements make headlines every few years.
Canada has weathered the current economic crisis relatively well due to strong banks and lower debts. But had the crisis hit harder, it’s hard to say how well our federation would’ve stuck together. Although actual separation is highly unlikely, our country is increasingly divided along provincial lines. It wouldn’t be surprising if, faced with a plummeting economy, each province sought its own interests regardless of the impact on the rest of the country.
Because our country is huge, bilingual and has many climates, we are often defined as a mosaic: promoting immigration and the peaceful coexistence of cultures. But it can also be said that we have an ambiguous national identity and much ink has been spilled in vain trying to answer the question of what it means to be Canadian. Through distinct provincial identities, national parties can appeal to certain provinces while completely neglecting others.
Our lack of national identity can be compared to the even more complicated question of what it means to be a European citizen. If Europe wants to adopt the Canadian system, it must clearly define European citizenship and how much allegiance is owed to one’s nation versus the union at large. Otherwise it opens itself to political stir-ups over identity issues, making its work even more complex and congested and giving rise to crises such as the present one.
